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. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Learn how you can invest in the corporate bond market without investing a large amount of capital through bond funds and ... Read Answer >>
  2. Can Mutual Funds Only Hold Bonds?

    Find out which mutual funds include only bonds in their portfolios. Learn why some funds invest in different types of bonds ... Read Answer >>
Related Articles
  1. Investing

    Corporate Bond Basics: Learn to Invest

    Understand the basics of corporate bonds to increase your chances of positive returns.
  2. Investing

    How To Choose The Right Bond For You

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  3. Investing

    Investing in Bonds: 5 Mistakes to Avoid in Today's Market

    Investors need to understand the five mistakes involving interest rate risk, credit risk, complex bonds, markups and inflation to avoid in the bond market.
  4. Investing

    The Basics Of Bonds

    Bonds play an important part in your portfolio as you age; learning about them makes good financial sense.
  5. Investing

    An Introduction to Individual Bonds

    Individual bonds are better than bond funds and can be a key component to one’s investment strategy.
  6. Investing

    Surprise! The Best Long-term Bond Investment May Be Savings Bonds

    A 20-year Series EE savings bond pays more interest than a 20-year Treasury bond. So are government-issued long-term bonds the best bet going?
  7. Investing

    Why Muni Bonds and Bond Funds are Perfect Together

    Municipal bonds and bond funds differ in several ways, which is partly why they complement each other well.
  8. Investing

    U.S. Corporate Bonds: The Last Safe Place to Make Money

    There aren't many other sources right now for relatively safe, steady income.
  9. Retirement

    Should I Invest in Bonds After I Retire?

    Yes, retirees should invest in bonds, but remember that not all bonds are safe investments. Seek the help of a financial advisor.
RELATED TERMS
  1. G7 Bond

    A term used to refer to government bonds issued by a nation in ...
  2. Group Of Seven - G-7

    A forum of the world's seven most industrialized economies. The ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Government Bond

    A debt security issued by a government to support government ...
  5. Bond Yield

    The amount of return an investor will realize on a bond. Several ...
  6. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
Hot Definitions
  1. Book Value

    1. The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated ...
  2. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
  3. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. ...
  4. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents ...
  5. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  6. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
Trading Center