According to an article in the Wall Street Journal, Companies and governments [in Europe] are increasingly borrowing

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According to an article in the Wall Street Journal, “Companies and governments [in Europe] are increasingly borrowing at … terms of up to 100 years.” The article notes: “That is good news for borrowers, but adds risks for investors.” Why would any investor buy a bond with such a long maturity, given that the investor is unlikely to still be alive when the bond matures? Why might such bonds be considered particularly risky to investors?

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Money Banking And The Financial System

ISBN: 1801

3rd Edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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