What Countries Are Good For Government Bonds Investment?

Government Bonds Investment

Which countries around the world offer good prospects for investments in government bonds? The choices available to investors are numerous and some countries may be a better investment choice than others. Some governments around the world are experiencing a debt crisis, and the most public of these is the situation in Greece. Other governments may be a solid or ideal choice for investors because the bonds offered are considered a very low risk for default. Emerging market countries may not always be a good choice for some investors because of the high risks involved, even though these bonds usually offer a very attractive potential return. The bonds issued by the Ukraine government are an investment choice that many investors stay away from because of all the risks involved.

Countries which offer government bonds that are popular with investors all have many things in common. The most important is a stable central bank and a free economy. France is experiencing a financial crisis but the bonds issued by the government of this country are still a very popular choice and are considered a good investment bet. France has a top credit rating and the country has low levels of debt when compared to America and some other countries. These bonds usually offer a higher than average yield but involve lower than average risks in many cases. In contrast bonds from Italy are best avoided for a majority of investors because this country carries a large amount of government debt.

Government bonds from Germany are also a good choice for most investors. Just like France Germany is experiencing a financial crisis but this has not affected the quality or popularity of the bonds offered by this government. The credit rating for Germany is the highest rating possible from all 3 of the credit rating agencies and the debt level for the country is low. Australia and Austria are two other countries that have bonds which are desired by investors, and both carry a AAA investment credit rating as well. Bonds issued by the Canadian government may also be an ideal choice for a majority of investors. These bonds offer a high credit rating and stability for investors, making these bond choices a top pick for some.

Australia government bonds are very attractive to investors right now for several reasons. One of these is the high credit rating that the company has, and another is the fairly low and manageable debt level involved. The high yield rate on the shorter term maturities may make these bonds ideal for some investors. The risk of default is relatively low and these bonds may carry a yield of 5% or more even when the maturity time is as little as 3 years. The economy of the country is considered very stable, and the currency risks involved are minimized. Bonds from foreign governments may not be the best choice for every investor but for those who want to get in these markets there are many countries that offer quality bonds with higher yields and low risks.