Bonds and gilts: the international capital markets
“ I used to think that if there was reincarnation, I wanted to come back as the president or the pope. But now I want to be the bond market: you can intimidate everybody.”
James Carville, adviser to Bill Clinton
“ Driving a car involves a foot on the gas, hands on the wheel, and eyes on the road. Navigating on the bond market requires a foot on interest rates, a handle on the prospects of being repaid, and an eye on inflation.”
- Bonds are debt instruments – securities sold by governments, companies and banks to raise capital.
- Bonds usually carry a fixed rate of interest (known as the coupon), have a fixed redemption value (the par value) and are repaid after a fixed period (the ...