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Bond markets and legal aspects of bonds. For government debt use the tag "government debt" unless the fact the the debt is in the form of bonds has significance.

2 votes

Why did the US credit rating downgrade in 2011 decrease US government bond yields?

We also analyze how the yields of French, Italian, German and Spanish government long-term bonds were affected by CRA announcements. … The reason is that part of the rating shock is absorbed by an internal repricing of sovereign bonds. …
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1 vote

Relationship between default risk and value of bond

I like @keepAlive's answer, but I thought it might be more accessible to discuss this question in a simpler setting. Imagine that a \$100 face amount bond that lasts for one period. If the bond does …
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6 votes
Accepted

Why aren't perpetual bonds more common?

The most famous perpetual bonds are UK Government Bonds known as consols. They weren't issued to avoid the rollover risk you highlight. Rather, their key benefit was liquidity. … If interest rates drop, making you want to replace old bonds, the price of the old bonds goes up until the yield of old and new bonds are equated. …
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2 votes
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History of Municipal Bonds

I highly recommend the following books on municipal finance, with a strong focus on municipal bonds: Encyclopedia of Municipal Bonds (Joe Mysak), despite the name a small book with quick overviews of … The Fundamentals of Municipal Bonds (MSRB), a short technical volume on the municipal bond market. Filled with useful charts and statistics. …
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1 vote

Why are the yields on short-term bonds more volatile than those of long-term bonds?

Why should "yield volatility" be higher for short term bonds? The basic intuition here is that some interest changes are temporary. … As a counter-argument though, consider that interest rates can drift much more over long periods than over short ones, which would make long-term bonds have more volatile yields. …
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4 votes

Who owns German debt?

This Deutsche Bank figure from 2013 has some broad categories for German debt and compares it with other rich countries: A newer chart, using slightly with more granular categories. Note that German …
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