Re:A Black Hole Engulfing the World's Bond Markets
by kgwgk on Sunday July 28, 2019 @01:53PM
(#20548842)
Yes, "risk free" has a technical meaning which doesn't include inflation risk. But it may be misleading when used in a non-technical context. Even if we assume for the sake of the argument that there is no default risk at all in government bonds you have risks linked to inflation and changes in interest rates (they affect the value of your investment before maturity and your ability to reinvest the coupons received according to the initial expectations).
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