There was no doubt in the security of the U.S.Treasury bonds issued to discharge the debt of the country.
Investment in treasury bonds seemed almost an equivalent of risk-free assets.
However, the recent events in the USA brought into question this truth.
For a long time Congressmen couldn’t come to a final decision on the ceiling of the state debt, financial organizations faced a difficult choice — delay in payment or default.
The complicated situation led to ago in the swap market with the security in the form of debt loans.
As a result a few days before the Congress made a decision over the rise of the state debt ceiling, the price of swaps jumped in 3 times.
Investors who were absolutely sure in the American assets were at a loss.
And taking into account that the worst scenario did not come true, a fair question came up: aren’t there any other bonds possible for investment except for the American treasuries?
According to the International Monetary Fund, the debt of the USA is 89% from the GDP of the country.
The debt of Germany is 56%. The bonds of the country offer stable but not very attractive profit.
Among the global players it is worth paying attention to New Zealand and Australia, the pure debt of which is 29% and 13%, respectively.
The interest rate of bonds in these countries is 4,6% and 3,9%.
It’s worth looking at Scandinavian countries — Denmark, Sweden and Norway. The debt of Denmark is just 9% from the GDP, although even this per cent is huge for Scandinavian countries who have profit/deficit.
Norway is the leader of the construction of the state economic system.
After oil boom the country took a decision not to spend the profit received from marketing hydrocarbon but to keep it in the fund of the country investing only a small amount in external assets.
The current profit/deficit of Norway in regards to its GDP is around 175.
These northern countries emit their state bonds exceeding their percentage of profit in comparison with similar bonds in the USA.
Thus, the US ten-year bond has a yearly rate at 2,6%, but in Norway it is 3%, thereby it is certainly not under the threat of default.