There's a reason they're 'frontier' bonds
Bond investors looking for a new place to drop some cash are exploring faraway countries with appealing interest rates. The downside: There's a chance they may not see their money ever again. Jeremy Hobson reports.
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TEXT OF STORY
Bill Radke: If the financial crisis and the recession are the sickness, and the medicine is low interest rates and a flood of cash into the market, then what are the medicine's side effects? Well, one of them is starting to pop up in what are called frontier markets -- from Vietnam to Belarus. Marketplace's Jeremy Hobson has that.
Jeremy Hobson: Bond investors are awash in dollars. One told me it was time to pass the snorkel. What to do with all that money? Forget Uncle Sam -- his bonds aren't paying much of a return these days.
Saleh Daher is managing director of the Turan Corporation. He says the best interest rates come from countries you need a passport, and maybe a couple of shots, to get to.
Saleh Daher: There is a tremendous appetite for return all around the world. Even faraway places like Nigeria and Angola.
He says so-called frontier bonds can pay as much as much as 8 percent more interest than U.S. treasuries. And if you have a taste for adventure, some upcoming issues include bonds in Vietnam, Belarus and Iran.
But remember, there's a reason they're called frontier:
Daher: If times are good, maybe they'll get paid. If times are bad, they may not see their money ever again. This is the problem.
Daher says investors should beware: As soon as Washington starts raising interest rates, the frontier gold rush could lose a bit of its shine.
In New York, I'm Jeremy Hobson for Marketplace.
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From Rentz, GA, 11/21/2009
Once again: Greetings to one and all:
As we’re getting closer and closer to Christmas, many throughout the entire world are preparing, making sure that all of the presents that should have been bought, wrapped, and placed under the tree, has been taken care of, and that not even one present has been forgotten.
Of course we know that this is just, most especially, the American way. Also the same is happening in different parts of the world as well, as all will know. Which, also is the way that it should be…I personally feel with people doing this, that is, showing love to others, is something that is very pleasing to our Lord, Jesus.
Something that would please him far better would be…that we don’t leave Him out of our celebrating of his birthday. For this is really what Christmas is all about, you know.
Then, we all know just how hard it is for people stay in balance. Seems that most people have a very difficult time with this. Seems that most go overboard, with just at times, getting one part of a whole situation centered within their mind (it sometimes being the miner part of the whole) with them then, loosing sight of major part.
If we have enough people do this, which we often do, not only about Christmas but life in general, we end up with a lop sided world to live within. I know all do not see all of this as I do, for we each have our own way of viewing this world and its situation. Even so, if we look back at past history, or things that have been brought about in days gone by and, still much of it happening within our day and time…by people completely out of balance, having no feeling whatsoever for their fellowman, this should tell us something, even if nothing else does, or regardless of whether anything else does, or ever will.
Much love,
William Dunigan
Your brother, in Christ Jesus, who is both our Lord, and Savior.
www.eloquentbooks.com/BeyondTheGoldenSunsetAndByTheCrystalSea.html
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