Would you buy a bond that outlives you?

Why would anyone want to buy a bond that last longer than they do?

These ultra-long-dated assets fell out of favor in the fallout from the financial crisis, as investors shifted to shorter-duration bonds to protect them against unpredictable spikes in interest rates. But now the “century bond” is returning to prick investor interest.

Canada has become the latest to sell long-dated debt, with its auction of 50-year bonds. At the sale of bonds maturing in 2064 earlier this week, the Canadian government doubled the minimum target size of the sale, raising $1.36 billion.

Century bonds tend to be issued by governments and well-established companies, but both have to pay a premium to investors over a 30-year bond, which tends to the longest dated debt available from most firms.



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