Austria’s 100-year bond has delivered stunning returns
Its price will crash if interest rates rise. But most buyers won’t live long enough to regret it
NO ASSET SHOULD be sleepier than the sovereign bonds of rich countries. In exchange for holding “risk-free” debt, investors accept low returns. In real terms, American ten-year Treasury bonds have returned just 1.9% a year since 1900, compared with 6.4% for shares. Since 2017, however, one bond issued by one rich country has returned a whopping 75%.
This article appeared in the Graphic detail section of the print edition under the headline “Austrian economics”
Graphic detail September 14th 2019
From the September 14th 2019 edition
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