Tag: bonds

What is happening to the bond markets after a Trump victory?

What is happening to the bond markets after a Trump victory?

Financial Markets Explained
The bond markets were in the news for the two straight weeks since the U.S elections held on November 8th 2016. After an initial rally, bond markets fell sharply and continued to fall in the following days making it one of the most talked about asset in the financial media. It wasn't just U.S bonds but also across the world, including Japan and Europe. For example, yields on the 10-year government bonds in Japan rose to 0.035% on Friday, November 18th, 2016, up from 0.005% just the day before. It was the first time that yields rose. Even far flung economies such as Singapore, Malaysia, Thailand, bond yields spiked. In bonds, yields run inversely to prices; meaning that when bond prices fall, yields rise. Learn the basics of bonds here. Blame Trump's policies for rise in bond
What are bonds. How to trade bonds online

What are bonds. How to trade bonds online

Financial Markets Explained
Bonds are the lesser known financial investment products in comparison to stocks or forex. This is largely thanks to the fact that trading in bonds offer high level of security and low returns as compared to stocks which works in the opposite. The most important thing to know about bonds is that they work the same way as loans albeit on a larger scale and volume. Bonds are debt instruments, as compared to stocks which are equity instruments. During bankruptcy, bond holders are given preference before equity holders. This is also known as seniority. Seniority pertains to the order of repayment in the event of a sale or bankruptcy of the issuer. As a thumb rule, senior debt holders must be repaid first before repaying subordinated or junior debt. What are bonds A bond is basically a deb