Those declared dead live longer.
If for a few years bond investments only seemed interesting because you couldn't think of anything better, they are at least an issue now.
Are you attractive yet?
You should never question me, sings Lohengrin in Wagner's opera of the same name.
.
.
One thing is certain: if you only look at the interest coupons, you can smile.
2.625 percent are on the most recent EU green bond, albeit with a term of 26 years.
But the Hamburger Sparkasse offers 2.25 percent for only four years.
With coupons ranging from 0 to 0.6 percent not so long ago, that's a lot.
But then there's the tiresome thing with inflation and the bottom line, which has rarely been as low as it is now.
And then there is the course development.
Austria's once vaunted 100-year bond, which was once paid for up to 1.38 times the nominal value, is now trading at 44 percent.
One euro paid, 44 cents back - that's really not a deal.
Well, by the end of the term in 2120, prices will recover at some point, the only question is when.
And a current yield of 2.45 percent is not a reason to buy at the moment.
Then rather the bonds mentioned above, there is currently one euro for the euro at the end.
45 percent is currently not a selling point.
Then rather the bonds mentioned above, there is currently one euro for the euro at the end.
45 percent is currently not a selling point.
Then rather the bonds mentioned above, there is currently one euro for the euro at the end.
Martin Hock
Editor in Business.
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But it's not as if some people don't see opportunities in bonds.
"Irrational exuberance seems to have been replaced by irrational pessimism," says Daniel Dolan, portfolio manager at hedge fund provider iM Global Partner.
This is good news for active, long-term investors.
At currently more than 1.5 percentage points, the difference between the American base rate and two-year government bonds is exorbitantly high compared to the past 46 years, making bonds more attractive than they have been for three years.
Quality bonds across the investment grade spectrum, which offer a yield spread of 1.75 to 2 percentage points compared to US government bonds, are generally interesting.
Based on two-year bonds, this would be the case with yields of around 5 percent.
That would apply, for example, to a bond issued by private equity provider Ares Capital.
But it currently takes courage to buy a bond whose price has fallen by 10 percent since last year.
Dolan quotes the father of value investing, Benjamin Graham: The intelligent investor is a realist who sells to optimists and buys from pessimists.
The only question that then arises is whether, in the end, one is not the realist but one of the other two.