Making Money Minute with Ron Hiebert - Government Bonds & Risk
Investors historically preferred to own government bonds over corporates because of their perceived creditworthiness and low default risk. In many cases that perception is a thing of the past. Governments have taken on staggering amounts of debt and reduced their ability to support those interest payouts by lowering taxes. Today, investors often find bonds issued by corporations that not only have better credit ratings but strong earnings to support their debt payments. As government borrowing continues to spiral out of control, corporate bonds look even more attractive. For more information, listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.
