Bonds exist because people want to lay off risk. Its not about the yield, as much as its about the risk. Sure, you want an upside, and the yield is about the upside. But the motivation in the first place, is about the risk.
"as safe as houses" turns out, not to be that safe.
"as good as gold" is still pretty good, but the next unobtanium is out there.
by and large, absent revolution, governments make good on their financial promises. Even the Soviets paid up on the baku oil shares, in the end. So sometimes, even WITH a revolution you get back some money.
Bonds are about risk. Why would you want to lay off risk? Because thats what risk avoidance is.
Bonds exist because people want to lay off risk. Its not about the yield, as much as its about the risk. Sure, you want an upside, and the yield is about the upside. But the motivation in the first place, is about the risk.
"as safe as houses" turns out, not to be that safe.
"as good as gold" is still pretty good, but the next unobtanium is out there.
by and large, absent revolution, governments make good on their financial promises. Even the Soviets paid up on the baku oil shares, in the end. So sometimes, even WITH a revolution you get back some money.
Bonds are about risk. Why would you want to lay off risk? Because thats what risk avoidance is.