What is ‘Japanese Government Bond – JGB’
A bond issued by the government of Japan. The government pays interest on the bond until the maturity date. At the maturity date, the full price of the bond is returned to the bondholder. Japanese government bonds play a key role in the financial securities market in Japan.
Explaining ‘Japanese Government Bond – JGB’
JGBs are very much like U.S. savings bonds. They are fully backed by the government, making them a very popular investment among low-risk investors and a useful investment among high-risk investors as a way to balance the risk factor of their portfolios. Like U.S. savings bonds, they have high levels of credit and liquidity, which further adds to their popularity.
Further Reading
- Defying Gravity: How Long Will Japanese Government Bond Prices Remain High? – www.nber.org [PDF]
- The dynamics of Japanese Government Bonds' nominal yields – papers.ssrn.com [PDF]
- An analysis of bidding in the Japanese government bond auctions – onlinelibrary.wiley.com [PDF]
- Understanding the low yields of the long-term Japanese sovereign debt – www.tandfonline.com [PDF]
- Pricing and quality option in Japanese government bond futures – www.tandfonline.com [PDF]
- The impact of the Bank of Japan's monetary policy on Japanese government bonds' low nominal yields – www.econstor.eu [PDF]
- The Determinants of long-term Japanese government bonds' low nominal yields – papers.ssrn.com [PDF]
- Assessing the Risks to the Japanese Government Bond Market – www.worldscientific.com [PDF]
