U.S. News & World Report: Investing in Foreign Bonds

Lou Carlozo, an investment reporter for U.S. News & World Report, is working on a story about international bonds and how to make smart investment decisions in purchasing them. Please reply to these questions *via email* by end of day Thursday, Apr. 26. Please put “U.S. NEWS BOND QUERY,” all caps, in the subject line to ensure I see your reply. 1. Why would investing on foreign bonds be a good idea: What might some of the positives be – for example, reducing volatility and risk? 2. What are some recent examples of international bonds that have turned out to be great investments? Not so great? 3. Where do foreign government bonds belong in a typical portfolio and does it make sense to invest in a fund that holds foreign bonds as opposed to, say, buying the bonds outright? 4. How exactly do foreign bonds perform differently in a portfolio as opposed to U.S. Bonds or other investments? 5. What cautions do investors need to take before making the decision to buy international bonds? 6. Do you have anything else to add? Statistics and report citing are especially helpful. Please be sure to cite the title of the source and where they are based. A high volume of answers may prevent me from replying directly. This story will run the following Tuesday, May 1.