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: