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<blockquote data-quote="chakalaka" data-source="post: 901275" data-attributes="member: 11354">Had a lunch with bankers last week. They told me bonds still have a long way to go down. At least the next ten years. Here´s a good explanation about interest rates and bonds. Basically if the interest rates go up. New bond issues will have higher yelds. Making the old ones which were issued with a lower interest rate and yeld undesirable. And therefore making it´s price go down. In the maturity though you will always get your money: <a href="http://www.investopedia.com/ask/answers/04/031904.asp" target="_blank">http://www.investopedia.com/ask/answers/04/031904.asp</a>I didn´t read it anywhere. But I guess if the interest rate goes up. People will just put their money in deposits and collect an interest rate. Even if bonds pay more yeld and can be sold. Supposedly to leverage in fixed income securities you should go to unregulated markets. An example of this type of markets is Dubai.</blockquote>

[QUOTE="chakalaka, post: 901275, member: 11354"] Had a lunch with bankers last week. They told me bonds still have a long way to go down. At least the next ten years. Here´s a good explanation about interest rates and bonds. Basically if the interest rates go up. New bond issues will have higher yelds. Making the old ones which were issued with a lower interest rate and yeld undesirable. And therefore making it´s price go down. In the maturity though you will always get your money: [URL]http://www.investopedia.com/ask/answers/04/031904.asp[/URL] I didn´t read it anywhere. But I guess if the interest rate goes up. People will just put their money in deposits and collect an interest rate. Even if bonds pay more yeld and can be sold. Supposedly to leverage in fixed income securities you should go to unregulated markets. An example of this type of markets is Dubai. [/QUOTE]

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