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.

Hot Definitions
  1. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  2. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  3. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  4. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  5. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
  6. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
Trading Center