Germany for First Time Sells 30-Year Bonds Offering Negative Yields

Re:Germany for First Time Sells 30-Year Bonds Offering Negat... by dmoy on Wednesday August 21, 2019 @11:08PM (#20764300)

Yes, but the FDIC equivalent in Germany is 100k, which doesn't help you if you're in the business of buying 30 year bonds (usually that's institution buying >10MM)

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Re:Germany for First Time Sells 30-Year Bonds Offering Negat... by jonathankoren on Thursday August 22, 2019 @03:58PM (#20771813)

No one buys a 10 million dollar, 30 year bond from a bank with 34 million in assets.

It’s disingenuous to claim that all banks are equal in terms of capabilities, assets, or risk.

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Re:Germany for First Time Sells 30-Year Bonds Offering Negat... by dmoy on Thursday August 22, 2019 @05:37PM (#20772613)

Agreed, but you certainly do it from a bank in Germany that isn't dbag. And if you're not dbag it's not such a sure thing that the government will come and save you.

Or say in the US, you'd buy that from US Bank, which isn't in the big 4 consumer, or top few commercial, and it could be let to fail.

It's still safer than a tiny bank, but it's not as safe as government bonds.

That's all it really boils down to - you pay a bit extra to get more safety.

You may be comfortable depositing $10MM in a US Bank reg D account, but I would not be.

Well actually for US Bank specifically I might because I know their business model is incredibly conservative. But replace that with another large but not big4 bank.

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