• Home
  • Articles
  • Iraq Bonds Safer Than Bonds from Some Major US Banks

Iraq Bonds Safer Than Bonds from Some Major US Banks

Author :

Tags: iraqi bonds

The risk premium for Iraqi bonds is actually less than for major banks such as National City and Keycorp. Investors are saying its safer to invest money in Iraq than in these banks.

  Comments: 0

Sometimes, information just makes you give pause.  So it was with this article I read on Bloomberg today.  Believe it or not, the risk premium on Iraqi bonds is actually less than the premium on bonds from major banks such as National City and KeyCorp. 

What does that mean exactly?  Bloomberg writes

"The country's $2.7 billion of 5.8 percent bonds due 2028 gained 45 percent since August 2007, according to Merrill Lynch & Co. indexes. Investors demand 4.84 percentage points more in yield to own the debt instead of Treasuries, down from 7.26 percentage points a year ago. The spread is narrower than for notes of Ohio banks National City Corp. and KeyCorp, suggesting Baghdad may be safer for bond investors than Cleveland."

Iraq if flush with oil revenue.  The country posted a $52.3 billion budget surplus according to the US Government Accounting Office.  Of course, all of this is happening at the same time that the US is pumping in billions per month do defend and rebuild Iraq.

One has to wonder.  It seems that the markets are saying very clearly that our own institutione and banks need the cash far more than the oil-rich Iraqis. 

Find the best Savings or CD Rate

Advertiser Disclaimer. Some of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).

Financial products of all nature bear inherent risks and this website is not a financial advisory service. BestCashCow.com provides information related to rates on US-based savings accounts, CD (certificate of deposit) rates, money market accounts, money market funds, government bonds, other bonds and income producing securities, commodities, equity securities, mortgage rates, home equity rates and auto loans rates, free of charge to internet users for their independent use. The accuracy of information on the website is not guaranteed, and no financial product of any sort is endorsed. On certain web pages, BestCashCow.com may contain discussion and analysis of the risks and rewards associated with certain financial instruments, including equity instruments, or may link to other pages with such discussions. The information should not be construed to provide investment advice. In fact, users are specifically warned against following any advice related to specific instruments, including advice that may be on other web pages linked from BestCashCow.com. Please seek personalized advice on the risks and applicability to your own circumstances of any financial product from a qualified professional. © BestCashCow.com, LLC, 2015.