We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Retirement portfolio for someone in their 60's
Comments
-
-
The combination of low central bank interest rates and QE has massively driven up bond prices. If interest rates go back up then bond prices will come tumbling down - especially if the central banks are trying to sell some of their gigantic holdings from QE.Is he meaning there is a big risk of losing a significant amount of capital by investing in these ITs, or 'just' that they are likely to be very volatile and will bounce back in the future but will continue to have high yields?
Even if interest rates stay the same, basic supply and demand says that if and when central banks change from being the principle demand to a major source of supply then the price falls through the floor.
None of this impacts you if you have bought bonds that you intend to hold to maturity, except that you've probably bought them at an expensive time. If, on the other hand, you are holding long-dated gilts that you want to sell...0 -
Are these high yield bonds more risky than for instance the type of bonds that are included in the VLS products?The combination of low central bank interest rates and QE has massively driven up bond prices. If interest rates go back up then bond prices will come tumbling down - especially if the central banks are trying to sell some of their gigantic holdings from QE.
Even if interest rates stay the same, basic supply and demand says that if and when central banks change from being the principle demand to a major source of supply then the price falls through the floor.
None of this impacts you if you have bought bonds that you intend to hold to maturity, except that you've probably bought them at an expensive time. If, on the other hand, you are holding long-dated gilts that you want to sell...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards