Re:Danes Get 20-Year 0% Mortgages
by wrzuteczka on Tuesday January 05, 2021 @04:08PM
(#25651063)
Where is that Y coming from? The rates of say EUR and CHF diverging?
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Yes. If CHF outperforms EUR, and the mortgage payments are in CHF, a bank that has most expenses in EUR is making a profit.
You can hedge against the performance of CHF by keeping proportional revenue streams of EUR.
Re:Danes Get 20-Year 0% Mortgages
by Chickenosaurus on Tuesday January 05, 2021 @05:11PM
(#25651897)
This theory doesn't make sense to me. Banks could simply buy foreign currency to achieve the same without the additional risk of defaulting lenders.