8 ms·
For anyone that doesn’t understand why this is a problem take this example: In 2020 you might have bought 10year 50k ECB bonds yielding 0–.5%. But in 2023 you
by userinanother 3y ago
For anyone that doesn’t understand why this is a problem take this example:
In 2020 you might have bought 10year 50k ECB bonds yielding 0–.5%. But in 2023 you need to buy a car for 50k. You don’t have to sell your bonds at a loss but you will have to borrow the 50k at 7% to pay for the car so the loss will happen anyway every month you pay 7% and earn 0%