Thursday, April 9, 2015

Things that make you go "Huh?"

SWISS GOVERNMENT ISSUES
10-YEAR NEGATIVE YIELD BOND

The new 10-YR Swiss bond has an interest rate of -0.055%.  So let me see if I understand this.... I am going to lend you money and pay you for the right to do so?  That said, it is still a better deal than you'll get in a account since the Swiss National Bank cut the deposit rate to -0.75%.

WSJ 

For some reason I think the entire concept 
is full of holes. 

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