Bonds and Investments Archives

Infographic: Should You Invest in Gold?

There has been a heightened interest in gold, evidenced by its all-time high trading price. Precious metals like gold are a popular choice for investors because it is safe – particular when markets are volatile – but does that make it a good investment?

The price of gold is always a hot topic. It is a precious metal that is not only aesthetically desirable, but monetarily valuable – especially in recent years. But is it best to keep it stored away or to invest it? And how has it performed domestically and globally?

Japan Could Overtake China as Top U.S. Debt Holder

China could soon lose its position as the top purchaser of US government debt as its slowing economy reduces its need to recycle foreign exchange reserves into Treasury holdings.

According to the monthly Treasury International Capital report released today, Chinese holdings of US debt rose just 0.1 percent this year through August to $1.15 trillion.

On the other hand, Japan, a stronger ally of the US, raised its stake by 6 percent to $1.12 trillion – keeping it on pace to top the list of foreign creditors by January.

Hollande Pushes For Eurobonds Despite Obstinate German Opposition

Despite tough opposition from Germany, French president Francois Hollande is expected to revisit the idea of Eurobonds at the EU Summit later this week. Hollande is pushing Eurobonds as a way to propel economic growth, but a German official has insisted that the proposal is “the wrong prescription at the wrong time”.

French Socialist Francois Hollande has made it clear that he wants to re-introduce Eurobonds as a way for mutualising European debt.

HSBC London Issues First Offshore Dim Sum Bond

HSBC, Europe’s biggest bank by market value, has become the first bank to issue a yuan-denominated bond outside a sovereign Chinese territory. Hoping to raise at least 2 billion yuan through the three-year ‘dim sum bond’, HSBC said the benchmark move will hasten the yuan’s internationalisation.

Calling the ‘internationalisation of the yuan simply too important to ignore’, the bank said the bond issuance was part of a broader strategy to boost London’s position as a major international renminbi hub.

China Approves Sale of $10b State Bonds to Japan

Japan has received approval from Beijing to purchase Chinese government bonds worth a total of $10.3 billion, as the two countries aim to strengthen financial ties. This is also the first time China has allowed a major advanced economy to purchase its sovereign debt.

With the announcement, analysts say it adds credibility to the yuan’s rise as an international currency.

[quote] In 2011, more than 9 percent of China’s total trade was settled in yuan, up from just 0.7 percent in 2010. [/quote]