Bonds Quote by Neil Macdonald
“Governments, many of them European, are actually offering - and investors are buying - bonds that are worth less at the end of five or 10 or even 30 years than their purchase price.”
About This Quote
Source Interview: Bloomberg TV, 2022
Governments issue bonds that lose value over long terms, yet investors still purchase them, exposing financial paradoxes.
In simple terms: Long‑term bonds can lose value, yet are bought.
Question bond risk and return.
Themes
Mood
Type
When to use this quote
- personal finance advice
- economic policy debates
Key Concepts
Questions to Reflect On
- Why do investors accept negative yields?
- What alternatives exist?
Investors may ignore future losses for short‑term gains.