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The TD Securities trading floor in Toronto.
The TD Securities trading floor in Toronto.
(Fred Lum/The Globe and Mail)

Why smart investors are buying government, not corporate, bonds

It’s silly season again in the corporate debt world, as markets continue to trade at less attractive levels than even the go-go, innocent days of early 2007.

Investors on both sides of the border are committing themselves to corporate bond issues with yields only marginally higher than risk-free government bonds, minimal upside but significant potential losses.