Tuesday, August 3, 2021

Germany 30-yr negative

 

Ok so if Germany “defaults!” on these does that mean YOU don’t have to pay the interest YOU owe THEM for the next 30 years?  :p


Don’t they have any “bund sturmtruppen!” over there to deal with all zie “geld drucken!”?







1 comment:

NeilW said...

There should be a smiley on that. It'll confuse some people

If you pay 240 for a bond and get 30 over ten years in interest and 100 redemption that implies a negative yield over time. You never get your money back.

If Germany defaults then the negative yield just gets more negative. You get even less money back.