No real value in 'safe haven' government bonds

Government bonds have long been considered a safe haven in times of economic and market turbulence, but for how long...

Indeed, the asset class continues to see healthy inflows and good performance, particularly amid the heightened volatility within the other asset classes since April this year. However, given the condition of government balance sheets, a strong case can now be made to support the fact high-yield corporates, viewed as the riskier proposition in comparison, are now a more attractive bet than government debt. Returns have been positive for both government bonds and high-yield corporates so far this year and it is easy to understand why both remain attractive – high-yield amid a persisten...