A Black Hole Engulfing the World's Bond Markets

Re:A Black Hole Engulfing the World's Bond Markets by dawhizkid on Sunday July 28, 2019 @12:42PM (#20548429)

Bank accounts are only FDIC insured (or equivalent) up to some limit. If you have hundreds of millions and would otherwise stuff that in a bank account buying bonds are a safe alternative to get around that limit.

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Re:A Black Hole Engulfing the World's Bond Markets by why_only_15 on Sunday July 28, 2019 @01:03PM (#20548560)

That doesn't really make sense, because if you have hundreds of millions of dollars you can just hold the money yourself.

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Re:A Black Hole Engulfing the World's Bond Markets by Dylan16807 on Sunday July 28, 2019 @01:11PM (#20548604)

Vaults cost money. Insurance costs money. And it's still not quite as safe. The ability to hold the money yourself acts as a soft cap on how negative rates can be, but that cap is not at 0%.

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Re:A Black Hole Engulfing the World's Bond Markets by BurningFrog on Sunday July 28, 2019 @01:57PM (#20548860)

OK, but is that really who is buying all these bonds?

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Re:A Black Hole Engulfing the World's Bond Markets by dawhizkid on Sunday July 28, 2019 @03:32PM (#20549400)

Yes, institutional money is driving push into bonds, not retail investors/individuals.

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Re:A Black Hole Engulfing the World's Bond Markets by BurningFrog on Sunday July 28, 2019 @07:30PM (#20550407)

Thanks. That clarifies this for me!

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