Re:The Fed Has Bought 70% of Net Treasury Issuance Since Oct...
by ur-whale on Tuesday January 28, 2020 @12:25PM
(#22171555)
>in order to chase yield.
At this point, it's not to chase yield, but simply to try and not shrink.
This is the reason why people are willing to buy debt with negative interest (e.g. EU sovereign debt): they're actually willing to pay money to shield capital from the impending implosion rather than grow it
Edit: or, better said: people are willing to buy debt with negative interest rates to get some sort of a guarantee on the size of the haircut that's coming their way.
At this point, it's not to chase yield, but simply to try and not shrink.
This is the reason why people are willing to buy debt with negative interest (e.g. EU sovereign debt): they're actually willing to pay money to shield capital from the impending implosion rather than grow it
Edit: or, better said: people are willing to buy debt with negative interest rates to get some sort of a guarantee on the size of the haircut that's coming their way.