SO LONG Debt markets around the world have rallied in 2019, however but it is longer-dated bonds that have been the outstanding performers, and among this year’s best asset classes
SO LONG Debt markets around the world have rallied in 2019, however but it is longer-dated bonds that have been the outstanding performers, and among this year’s best asset classes

The long game

When Austria sold a €3.5bn 100-year bond two years ago at a yield of 2.1%, a few eyebrows were raised. Now the bond is among the best-performing assets in the world this year, notching up a total return of nearly 66% since the end of 2018. German 30-year bonds, which have recently seen their yields turn negative, have returned 28% this year. Holders of UK 50-year bonds are sitting on a 22% gain.

Oil pours out of a spout from Edwin Drake's original 1859 well that launched the modern petroleum industry at the Drake Well Museum and Park in Titusville, Pennsylvania. Picture: REUTERS/Brendan McDermid
Oil pours out of a spout from Edwin Drake's original 1859 well that launched the modern petroleum industry at the Drake Well Museum and Park in Titusville, Pennsylvania. Picture: REUTERS/Brendan McDermid

Financial Times

Big oil, big deal

Saudi Aramco will take a 20% stake in Reliance Industries’ refining and petrochemicals business, marking the energy giant’s latest expansion into the Asian refineries industry. The deal, which has an enterprise value of $75bn, is the largest foreign investment in India, Reliance chair Mukesh Ambani told the company’s annual shareholders’ meeting in Mumbai this week. Saudi Aramco will provide Reliance’s refinery business with around 500,000 barrels of oil a day.

Financial Times