'Bond' finally stops being a dirty word
THE word "bond" has become indelibly associated with bad news: high-bond yields leading to bailouts; holders of bonds not being burned; auction of bonds falling flat; and so on, and so on.
Yesterday, bonds were good news – perhaps even historic news – with remarkable results from Bank of Ireland and the ESB in selling their bonds to lenders.
It is a useful reminder that the obscure world of bonds is just a particular way of borrowing. It has the advantage that, because the potential lenders make offers, it is possible to see how keen they are to lend.