Offshore Investing

  • Email
  • LinkedIn
  • RSS

  • Home
  • About Us
  • Contact Us
  • Local Funds
  • Offshore Funds
  • Legal
  • Providers
  • Links
  • Blog

Graph illustrating selected ten year bond yields

Graph illustrating selected ten year bond yields

Graph illustrating selected ten year bond yields

Dear Client
Have a look at the graph above to see what the yields (reward for taking the risk of not having one’s capital returned at the end of the term to maturity – in this case, 10 years) selected countries are offering investors who purchase their government bonds which mature after 10 years (from March 2016).
Simply put, the higher the perceived risk at inception, the higher the issuer needs to pitch his coupon (the annual income yield to the client as expressed as a % of the capital sum invested) when marketing his debt instrument – 10 year sovereign or government bonds in this case.
These yields change during the term for those investors who wish to buy into the instrument (bond) during the investment term (rather than from the outset). Smart investors will purchase a bond when it’s out of favour and the yield is therefore high. The time to buy SA government bonds – unbelievably – is now! Smart investors will sell out of a bond when its yield is low (sometimes the yield changes quickly, such as when Nene was fired). It is often hard to buy more of an asset (in this case a debt instrument) after you’ve recently lost money by being invested in it. That is what being a contrarian investor means. Buy when your heart is telling you to sell. Sell when it is telling you to buy.

Our SA R186 (10 year bond) which matures just 9 months after those illustrated in the graph, is offering a yield of just a fraction lower than that offered by the Greek government’s 10 year bond. Depending of your view of the SA government’s continued ability to repay you your capital in December 2026, you may want to buy into SA government bonds.

CURRENCY CONVERTER

Blog Archives:

Popular Posts:

  • High Yielding Investment from Fedgroup
    Nov 19, 2014
  • Surviving financially through the lockdown
    Jun 28, 2020
  • Allan Gray’s Rand denominated overseas funds re-open, ...
    Apr 06, 2017
  • COVID 19 Lockdown update & Moody’s downgrades SA ...
    Mar 30, 2020
  • Some tips on planning for your retirement
    Oct 28, 2019
  • Tax Free Savings Plan
    May 14, 2015
  • A way forward for SA from JP Landman – An excellent pi...
    Apr 24, 2020
  • Trump bump or long term receovery?
    Mar 10, 2017
  • Nero fiddles while Rome burns
    Feb 09, 2017
  • ALSI likely to produce negative returns for a while
    Nov 02, 2014
  • SA vs selected major ten year govt bond yields
    Apr 29, 2016
  • A New Year
    Jan 12, 2017
  • Market Turmoil & now Lockdown at the bottom of Africa
    Mar 23, 2020
  • The Changing Oil Environment
    Dec 11, 2014
  • Retiring this year?
    Apr 20, 2015
  • Foreign Capital Allowance Increases and Curbs on the use of ...
    Mar 04, 2015
  • Are South African Bonds due for a hit?
    Aug 13, 2014
  • Brexit Update and is the JSE the only place for me?
    Aug 08, 2016

Sitemap:

  • About Us
  • Contact Us
  • Graph illustrating selected ten year bond yields
  • Legal
  • Links
  • Local Funds
  • Offshore Funds
  • Providers

Connect with Us:

  • Email
  • LinkedIn
  • RSS

Subscribe to our Blog:

Search this site:

© 2014. Groom Investment Consulting cc. All rights reserved. Designed & Customised by Terri Love Designs