Money and Interest

Money and Interest

Government Bonds Less Interest

When it comes to government bonds, on the other hand, the returns are less interesting. Mathias Bauer, head of Raiffeisen Capital Management: “Government bonds have long been classified as a safe haven for investment, but corporate papers are now preferable on risk grounds.” This is why Austria’s money experts in general are advising investors to alter their strategies. Franz Witt-Dorring, Head of UBS Austria: “Investors should not commit to any government bonds with a term longer than seven years, since such papers could come under pressure in the next 12 to 24 months.” Erste Bank expert Hollinger went on: “Investors should be reducing the average remaining term of their fixed-interest bonds held in security deposits. They should also consider shifting their fixed-interest securities into floaters.”

Private Banking Manager Ohswald:

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