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Because the interest rate will soon be less than the bonds. Negative interest rates coming down the pipe globally. Only way that I can see it getting justified.
by devoply 7y ago
Because the interest rate will soon be less than the bonds. Negative interest rates coming down the pipe globally. Only way that I can see it getting justified.
- freeflight 7y agoThe writing has been on the horizon for a while already [0] [0] https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2283~2ccc074964.en.pdf?fbb6d4de645fdd3ea2f6b24834bfd82c https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2283~2ccc0749...
- nemo44x 7y agoNot sure why this is downvoted but there's possible truth to this. In addition, these bonds could in fact make you a lot of money in the short term if the interest rate for these bonds continue to get more negative.
- kgwgk 7y ago> Because the interest rate will soon be less than the bonds What interest rate are you talking about? The interest rate for all the other maturities was already negative.