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Owning negative yield bonds not only you don’t make a return above inflation, but you have to pay for the privilege of owning them. Why do you think that it’s a
by tigershark 7y ago
Owning negative yield bonds not only you don’t make a return above inflation, but you have to pay for the privilege of owning them.
Why do you think that it’s a good thing?
- pas 7y agoUsually the interpretation is that it is still better than the alternative. Eg a pension fund has to put money somewhere, but it has to be low-risk. Hence the seemingly absurd demand for negative yields.