What is the interest of bondholders?

Doug Henwood dhenwood at panix.com
Sat Jun 26 09:05:46 PDT 1999


Juan Jose Barrios wrote:


>Bondholders (correct me if I am wrong)
>usually are long term players, while currency and stock holders are more
>short-term guys, who play with the *value* rather than the *interest
>rate* they get.
>
>In other words, bondholders may well want higher interest rate because
>they probably want to keep the bonds instead of selling them.

Life insurance companies buy & hold. But there are plenty of traders who turn bonds over almost as quickly as stocks. The average holding period of a 30-year U.S. government bond is about 30 days.

Doug



More information about the lbo-talk mailing list