Daily Archives: August 17, 2012

James Mackintosh

Bonds have been rallying hard since Mario Draghi of the European Central Bank raised the prospect of a eurozone solution.

But perhaps what really matters is the US presidential election in November. Uncertainty ahead of the election tends to push investors into bonds, says UBS. It looked at the development of Treasury bond yields in the run-up to elections (excluding 2008, which was overshadowed by the financial crisis). Read more

James Mackintosh

Junk bonds are offering close to all-time low yields after a 10 per cent return so far this year. They are the beneficiaries of the same hunt for yield that has driven high-quality high-dividend shares to record highs, and to significant valuation premia.

 Read more