Joye dives into the “widowmaker trade”

Friday 16 September 2016

Buying “duration” in recent times – or assets like fixed-rate bonds that expose you to long-term interest-rate risks – has been one of the more dangerous trades in human history.

…In the first 14 days of September, AAA rated Australian government bonds lost 1.5 per cent (or 152 basis points) of their value even after accounting for their miserly yield.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.