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China’s Sovereign Bonds. The Alternative Safe Haven

China’s Sovereign Bonds. The Alternative Safe Haven

Against a dreary backdrop of low, zero, or negative yields from traditionally safe-haven bonds like U.S. Treasuries, China’s sovereign bonds offer an alternative way to diversify a global portfolio. By combining higher yields, relative to developed market bonds, and lower volatility, relative to emerging market bonds, Chinese sovereign bonds have produced high risk-adjusted returns with low correlations over the past 10 years.[…]