Government bonds are considered the world’s safest asset, setting the “risk-free rate” against which all other investments are judged. But with rising national debts and dwindling credit ratings, are they really above question?
We discuss the implications for investors if government bonds are actually at risk of default.
And in today’s Dumb Question of the Week: Why choose bonds over simply holding cash?
- Aswath Damodaran Twitter thread
- In Search of Safe Havens: The Trust Deficit and Risk-free Investments! (Aswath Damodaran)
- The Bond Bear Market & Asset Allocation (A Wealth of Common Sense)