Sovereign Bonds

Written By von_bodman .

At the end of February - before Trump tariffs - I was looking for sovereign bonds outside of the US and here is a quick list:

  • South Africa had a 1-year bond paying a 10% coupon

  • Nigeria had a 3-year bond paying an 8% coupon

  • Egypt had a 3-year bond paying a 7% coupon

  • Serbia had a 3-year bond paying over 6% coupon

  • Mexico had a 3-year bond paying over 5% coupon

The point is if the country has a low default rate, a growing economy, and recent government stability, then these bonds are attractive for diversification and steady income. Rule of 72 says a little over 8 years of 9% coupons doubles your money and to do that with bonds!

von_bodman .
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