Tuesday 20 March 2018

'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.

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