What is a G7 Bond?
G7 bonds are generally regarded as less risky than bonds issued by other countries. Accordingly, they are often more liquid than sovereign debt from other countries and are sometimes preferred by conservative income investors who want some international exposure.
How Does a G7 Bond Work?
The G7 nations include the United States, Canada, the United Kingdom, France, Italy, Germany and Japan. These countries are developed countries with considerable industrial power. The bonds from these governments, accordingly, have strong nations backing them.
Why Does a G7 Bond Matter?
A G7 bond is a bond issued by any nation in the Group of 7 (the G7).