Can you buy a Euro-denominated bond with a yield of >5%?

D

Dave Vanian

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Seeing as 10-year US Treasury bonds are now paying a yield of over 5%, I was wondering if there's anything comparable in the Eurozone? My thinking is that if one could buy a bond at issue with a yield of >5% from within a self-administered ARF with an annual charge of, say 1%, then it could pay out the required 4% ARF income without touching the original ARF capital, until the maturity date of the bond.
 
Italian government bonds with roughly 10 to 12 years maturity are available on Trade Republic with a yield of between 4.5% and 4.8%.
I'd imagine they are one of the "most risky" of the western EU nations.
Someone mentioned on another thread that Romanian government bonds, which I believe (but not sure) are denominated in Euro, are over 5%. E.g. Trade Republic has such a bond maturing in April 2034 with a 6.37% annual return. The coupon is 3.5%, but it's trading at about a 24% discount.
 
Persius said:
Italian government bonds with roughly 10 to 12 years maturity are available on Trade Republic with a yield of between 4.5% and 4.8%.
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These bonds trade at about 200 basis points over German bonds. The extra yield is pretty much entirely to compensate for the extra risk of default by Italy.

Someone would be mad to hold this kind of single exposure as their main pension asset as there is huge potential for capital loss.
 
Big possibility of a big capital gain

Back in 2007 or 2008, Irish Government bonds were available at a 50% discount
 
jpd said:
Back in 2007 or 2008,
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More like 2011.

They were trading at a huge discount for because Ireland was on the brink of defaulting.

Smart people made a lot of money from buying Irish bonds at that time but you would have been crackers to gamble your pension wealth on it.
 
The ECB is is artificially depressing Italian yields and is targeting the yield spread of fiscally exposed countries. Italy's fiscal deficit is not under control. The ECB are under pressure to stop PEPP reinvestments as its running counter to broader monetary policy. A mad bet.
 
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