News for hackers. Stuff that matters.

A comment on Danes Get 20-Year 0% Mortgages. Parent comment

Re:Danes Get 20-Year 0% Mortgages by gen220 on Tuesday January 05, 2021 @04:57PM (#25651711)
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.

[ Parent | on HN ]
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.
[ Parent | on HN ]