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Wasn’t the question about cash versus bonds—not equities versus bonds? Honest question: What advantages do bonds with negative rates have over cash with low po
by nihonde 7y ago
Wasn’t the question about cash versus bonds—not equities versus bonds?
Honest question: What advantages do bonds with negative rates have over cash with low positive rates? Do bonds protect against inflation?
- runako 7y ago"Cash" in quantity usually doesn't mean literal dollar bills or euro notes. "Cash" typically means instruments like US Treasury bills or the bonds issued by other governments. The negative rates are in essence what investors pay in order to hold their money in "cash."