Re:India’s banking system is flirting with a Lehman moment
by pjc50 on Saturday November 10, 2018 @06:43AM
(#18420925)
> is never going to be paid back
It will probably never be paid down to zero, but this doesn't matter. The debt is made of individual bonds, which have a duration (usually up to 30 years), and are paid back at the end of that duration. By taking out new bonds.
They are valuable because what else are you going to do with your money, when you have a large amount to safeguard?
It will probably never be paid down to zero, but this doesn't matter. The debt is made of individual bonds, which have a duration (usually up to 30 years), and are paid back at the end of that duration. By taking out new bonds.
They are valuable because what else are you going to do with your money, when you have a large amount to safeguard?