Italy Now Considering Long Duration Bonds

Long duration bonds are again the popular trend, as Italy is now reported to be engaged in planning to join Spain, France, Belgium and Petrobras in offering investors long-dated interest rate exposure. What me worry? Repayment in full on long duration bonds not an apparent investor issue With sovereign bond terms across Europe rising to an average of 6.6 years, Italy is currently testing the waters for long duration bonds that mature in the year 2066, the Financial Times reported. A fifty-year term on a bond exposes investors to significant duration risk, particularly with sovereign nations that are approaching mathematical…