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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Impact of QE on bond markets
aroominyork
Posts: 3,897 Forumite
The papers are reporting that £150bn of QE/bond buying is going to be announced. What does this mean for bond funds - especially strategic bond funds - and taking into account whether they predominantly hold gilts or corporate bonds; investment grade or high yield/junk; long dated or short dated? (Apologies for yet another thread trying to understand bonds but I don't think I'm the only person who finds them confusing.)
0
Comments
-
It should move the price up a little short-term at least. However it pushes the bonds up to the point where there is hardly any return on them meaning they are not really attractive for anyone else to buy and pension funds for instance, can't get a decent, safe return in order to pay their pensioners and hence get pushed into riskier assets as far as they are permitted.
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards