This week I have a terrible admission to make. I drank a little too much wine at a recent press event, but that was a good thing as I was searching for an inner truth about investing in bonds.
My revelation was many investors do not give a damn about market experts’ predictions of an imminent bonds rout, and demand for a new wine bond from Naked Wines is likely to quickly overwhelm available supply. Before the event, I had carefully prepared all the usual ‘to-be-expected’ questions, such as: ‘Isn’t it a bad time to be issuing a new bond when everyone says bonds are dropping in value?’ I had also prepared my oft-rehearsed line that the whole retail bonds revolution was possibly getting ahead of itself with lowish returns for longish duration risk by issuers that were not exactl...
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