Interest Rates: Naturally Negative?

Re:Interest Rates: Naturally Negative? by all_blue_chucks on Tuesday August 13, 2019 @05:07PM (#20690250)

It's only government bonds that go negative. Corporate bonds will always provide a positive yield.

[ Parent | on HN ]

Re:Interest Rates: Naturally Negative? by christophilus on Tuesday August 13, 2019 @05:24PM (#20690409)

Apple issued negative bonds in some European country recently, if I understand this[0] correctly. Anyway, I don't think there's anything preventing a company from issuing negative bonds. Whether or not anyone would buy them is another question.

[0] https://markets.businessinsider.com/bonds/apple_incsf-notes_...

[ Parent | on HN ]

Re:Interest Rates: Naturally Negative? by kgwgk on Tuesday August 13, 2019 @05:21PM (#20690378)

Except they don’t already in many cases.

https://www.barrons.com/articles/yields-go-negative-on-corpo...

[ Parent | on HN ]

Re:Interest Rates: Naturally Negative? by samsonradu on Tuesday August 13, 2019 @05:26PM (#20690427)

Well one has to consider that it's pretty much the same big pool of money chasing both. This money pool thinks that German 10Y yield should be around -0.60%, while the Italian 10Y yields a juicy 1.62%. That says quite a bit about the future solvency issues around Italy.

Bottom line is that if there are still positive yielding bonds in a market dominated by negatives (we're not yet there) the risk of default is priced in.

[ Parent | on HN ]

Re:Interest Rates: Naturally Negative? by shshehe on Tuesday August 13, 2019 @05:15PM (#20690333)

If you can look into the future w that certainty you should trade stuff.

[ Parent | on HN ]