Put options on government bonds 661


Put in writing your desires regarding your own funeral put options on government bonds 661, or that of a loved one, in advance. The rationale being that when the economy is struggling, the RBA will be cutting interest rates to stimulate activity. As the vast majority of government bonds are fixed rate, when interest rates fall their prices increase and this will offset any declines from the equity allocation of your portfolio.In recent weeks I have seen a number of press articles talking about the ways in which investors can purchase downside equity protection, from buying puts (a hedge against a declining share market) on the ASX (or SPI) to investing in exchange traded funds (ETFs) set up to increase in value when the ASX falls.

Many of these articles go on to show how by paying a premium or indirectly paying a fee, investors can purchase protection. Further they show that if these strategies were in place thenGovernment bonds are typically countercyclical, meaning they rise in value when equities are falling. Further they show that if these strategies were in place then.




Put options on government bonds 661

Put options on government bonds 661