Professor Elam

Thursday Sept 15 2016

We are studying bonds in ACCT 3304. I have advised all classes that much can be learned in context by reading the WSJ.  Today's issue has several articles on bonds.

Long Bonds Waiver in Volatile Trading

The Streetwise column warns of further possible bond price declines after decades of advance.

Heard on th Street declares the Good Times are Over for Global Bonds

Click the links to learn how, after offering negative yields, buyers get back less money than they paid for the bond, bond prices are now falling and yields are rising.

There is unlimited risk of buying a bond with a negative yield. As rates rise it is hard for me to imagine that anyone would bid on such a bond, why, there is no interest income.