What are G7 bonds?

By Steven Merkel AAA
A:

G7 Bonds refer to bonds that are issued by the governments of the following seven countries: United States, Canada, France, Italy, United Kingdom, Germany and Japan. These bonds can be purchased on an individual bond basis or in the form of a group of bonds or "bond fund"- some are available in mutual funds for retail investors.

In 2008 and early 2009, G7 bonds became very popular for their conservative steady nature as investors turned to the U.S. Treasury and other government-backed bonds. G7 bonds are bonds issued by the governments of what are considered the seven largest stable governments currently marketable to investors. Investors seek these bonds for their portfolios when they want income-producing investments with low risk and piece of mind.

As an alternative to G7 government bonds, if you're considering bonds from less developed countries, check out An Introduction To Emerging Market Bonds.

This question was answered by Steven Merkel.

RELATED FAQS

  1. What are the advantages of using an effective interest rate figure?

    Understand what is meant by the effective interest rate, and learn why the effective rate calculation is preferred over the ...
  2. What are the pros and cons of operating on a balanced-budget?

    Take a brief look at some of the major arguments for and against balanced budgets for the U.S. government, the largest debtor ...
  3. What are the risks associated with investing in a treasury bond?

    Read about the risks of investing in risk-free U.S. Treasury bonds, including interest rate risk, inflation risk and opportunity ...
  4. How is it possible for a rate to be entirely risk-free?

    Find out whether there really is such a thing as a risk-free rate of return, and learn why taking the idea of risk-free rates ...
RELATED TERMS
  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Treasury Yield

    The return on investment, expressed as a percentage, on the debt ...
  3. Series I Bond

    A non-marketable, interest-bearing U.S. government savings bond ...
  4. Safe Haven

    An investment that is expected to retain its value or even increase ...
  5. Bond Resolution

    1. A document used with government bonds, especially general ...
  6. Fully Taxable Equivalent Yield

    The yield on a municipal bond, when the effect of reduced taxes ...

You May Also Like

Related Articles
  1. Mutual Funds & ETFs

    Pros & Cons Of Bond Funds Vs. Bond ETFs

  2. Bonds & Fixed Income

    African Sovereign Debt: Risks and Rewards

  3. Mutual Funds & ETFs

    Is the TLT ETF a Good Bet for the Long ...

  4. Stock Analysis

    Government Bond ETFs: Pros and Cons

  5. Bonds & Fixed Income

    Interested In West African Debt? Look ...

Trading Center