Sunday, September 23, 2012

Safe havens are now risky





Sovereign debt forms, or sovereign bonds, are one of the oldest types of investments and are considered one of the safest.


This type of investment is divided into two categories. Developed countries that carry very high credit ratings are viewed as safe options. However, they offer comparatively lower yields.


Emerging countries, meanwhile, usually come with lower credit ratings but offer higher returns.


This was the traditional definition of sovereign bonds that has been a textbook guideline for many investors over the past decades.









via Business feed http://www.scmp.com/business/money/markets-investing/article/1042358/safe-havens-are-now-risky

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