What is ‘G7 Bond’
A term used to refer to government bonds issued by a nation in the Group of Seven (G7). A G7 bond is considered relatively less risky than bonds issued by nations outside the G7.
The G7 nations are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. All these nations are considered industrialized and developed countries.
Explaining ‘G7 Bond’
For retail investors, there are funds that invest mainly in G7 bonds. These fixed-income funds target risk-averse investors looking for stability and preservation of capital. G7 bonds are often characterized by their high liquidity and low risk.
Further Reading
- On the relationship between changes in stock prices and bond yields in the G7 countries: Wavelet analysis – www.sciencedirect.com [PDF]
- The pricing of G7 sovereign bond spreads–The times, they are a-changin – www.sciencedirect.com [PDF]
- Volatility spillover dynamics and relationship across G7 financial markets – www.sciencedirect.com [PDF]
- Linearity and stationarity of G7 government bond returns – repository.hkbu.edu.hk [PDF]
- Disagreement among forecasters in G7 countries – www.mitpressjournals.org [PDF]
- Stock‐Bond Co‐Movements and Flight‐To‐Quality in G7 Countries: A Time‐Frequency Analysis – onlinelibrary.wiley.com [PDF]
- Exploring the benefits of international government bond portfolio diversification strategies – www.tandfonline.com [PDF]
- International stock–bond correlations in a simple affine asset pricing model – www.sciencedirect.com [PDF]
- Macroeconomic factors and the correlation of stock and bond returns – papers.ssrn.com [PDF]
