How safe Government Stocks?

[xr7]

I have some Government Bonds,2016&2020. How safe are these at the moment? Can the Government default on these?
If any of your readers had them would they feel secure with them or would they get rid of them immediately?

The rest of my questions are straying from the subject for which I apologise.

How safe are unit linked funds, ("guaranteed" and unguaranteed) tracker bonds, PRSA'S, STA's. I have asked the ICL if these are "guaranteed" under there scheme? However in the meantime does anybody know if these are guaranteed under any Goverment or EU scheme?

What would your readers do if they held these at the moment, hold on to them or cash them in as soon as possible, taking whatever loss this action involved?

All replies greatly appreciated especially on the "unit linked" before Monday if possible.

 

[jpd]

Some people think that there is a small risk of Ireland defaulting which is why the Government has to pay a higher interest rate than Germany for it's bonds. However it is hard to see that happening - no doubt public spending will be reined in long before that happens either by the Gov't or the IMF/EU.

Gov't Bonds are not guaranteed under the Deposit Protection scheme.

Unit linked funds, etc are not guaranteed either - the guaranteed bonds depend on the solvency of the company issuing them and the others depend on the financial markets. There is an investment protection scheme to protect investors from fraud and dishonesty but not market movements.

As to whether you should hold onto them or not really depends on your attitude to risk, your capacity to absorb losses in the short/medium term and your long term goals and would require a detailed analysis of your financial situation to give a sensible answer.