Why do people buy shitty government bonds when they could be

Risk free

>>1471902
People would have to be insane or stupid to buy govt bonds.

Banks have to hold them, I can't imagine anyone else would even consider them these days.

>>1471902
institutional investors

>trusting AAA scores ever again after 2008

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>>1471902
corporations die every day.
countries once in a blue moon. buy greek bonds , buy africa bond, buy brazilian bonds. buy them on credit. dont be a fool.

>AAA
AIG and Lehman brothers were rated the same before the crash and burn

>>1471902

This guy is right:
>>1471903

This guy is an idiot:
>>1471912

The government can't involuntarily default when it issues the currency and has no convertibility policy (eg. gold standard).

Of course, you may well invest in corporate bonds because they offer a better yield but government bonds are as safe as it gets.

>>1471947
This

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>>1471912
>People would have to be insane or stupid to buy govt bonds.
Yeah, why the fuck would anyone buy some boring shitty government ....

oh, nevermind.

>/biz/ never fails to disappoint

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to make ticks bro

>>1472716

some bonds are negative yielding now. people buy them to front run expected monetary policy.

people buy things that yield nothing. so the EV of the coupons doesnt allow any capital loss

>>1471912
>be insurance company
>need somewhere to invest reserves in order to pay for future insurance claim liabilities
>invest in AAA rated corporates
>company defaults and you've got nothing to cover your liabilities


Jeez wow you're so clever OP

>>1472762

Help me understand what I'm looking at here, it looks like the liner pattern off of some Gucci purse