Thanks for that Joachim. One objection: I believe the EU's issuance for NGEU was *not* joint and several, that is, Germany would not be liable for other countries shares. If there was joint and several liability, the German constitutional court would have objected (as the financial autonomy of the German parliament would have been infringed - in english: Germany would have to cough up money its parliament had not decided to cough up). There were several cases brought before the GCC on those (and other) grounds, which it rejected.
Well, if you look at it with currencies, then it seems they didn't make the cut, but how do you invest in Swiss Francs? By investing in Swiss government bonds, etc.
i normally associate the safest, most liquid gov bonds with currency, and not really a duration loan deemed a bond. (are money market funds a currency or a bond?)
are these combined as one group in your post, and the episilontheory risk article?
My post only talks an out government bonds within the Eurozone, so no currency considerations there.
For the Epsilon Theory post I don’t know. But my guess is when people think about currencies and write about currencies they don’t necessarily think about bonds because they don’t think about how to invest in a currency in practice.
One reason for retail investors preferring national bonds may be tax advantages.
Haven't thought about that. What tax advantages are there for Eurozone national bonds?
Depends from country to country, but Italy for example:
https://www.reuters.com/markets/rates-bonds/italy-adopts-tax-incentives-domestic-government-bond-buyers-2025-01-14/
Thanks for that Joachim. One objection: I believe the EU's issuance for NGEU was *not* joint and several, that is, Germany would not be liable for other countries shares. If there was joint and several liability, the German constitutional court would have objected (as the financial autonomy of the German parliament would have been infringed - in english: Germany would have to cough up money its parliament had not decided to cough up). There were several cases brought before the GCC on those (and other) grounds, which it rejected.
Yup, you are right. The Covid bonds were proper joint issuance, but not NGEU.
european bonds didnt make the cut, top 5 in safety semantics...better marketing needed?
https://www.epsilontheory.com/the-death-of-risk/
(novel methodology interesting in itself)
Well, if you look at it with currencies, then it seems they didn't make the cut, but how do you invest in Swiss Francs? By investing in Swiss government bonds, etc.
good point.
i normally associate the safest, most liquid gov bonds with currency, and not really a duration loan deemed a bond. (are money market funds a currency or a bond?)
are these combined as one group in your post, and the episilontheory risk article?
My post only talks an out government bonds within the Eurozone, so no currency considerations there.
For the Epsilon Theory post I don’t know. But my guess is when people think about currencies and write about currencies they don’t necessarily think about bonds because they don’t think about how to invest in a currency in practice.