Western World Debt - How much more can it be expanded before it needs a large correction

Itchy

Frequent Poster
Messages
327
To answer your question, the ecb is the only entity buying negative yielding bonds in the eurozone,
Fake news!

Would you buy government debt at a negative yield if you were in the private sector, just asking?
You misunderstand the concept of a negative yield. A negative yield doe NOT mean a guaranteed loss or nor does it mean negative income. For example, they are used to hedge FX positions. You are also focusing on yield rather than security (i.e. credit risk) - and thats what your plc board will fire you for!
 

BilliamD75

Registered User
Messages
71
Physical cash??? You think a properly run plc should keep physical cash? Because bank deposits are paying negative interest.


No you haven't. You made up an answer.
Ryanair said recently that they have 4 billion cash reserves available I will ask where they keep it for you, if the ecb are not buying provide the aam readers who are,
 

BilliamD75

Registered User
Messages
71
Fake news!



You misunderstand the concept of a negative yield. A negative yield doe NOT mean a guaranteed loss or nor does it mean negative income. For example, they are used to hedge FX positions. You are also focusing on yield rather than security (i.e. credit risk) - and thats what your plc board will fire you for!
A negative yield is a guaranteed loss, the underlying value of the bond allowing for inflation may rise or fall and so does the income you cannot have it both ways, the ecb position on the bonds is loss making and if it continues it will need a bailout as the underlying value of the bond is at risk.
Fake news hmm then you provide a link to who is buying the negative bonds, I said in a post last year that we were heading into an economic storm which we are in and that the ecb was at the wheel which it is, I clearly know what I am talking about, I will stick to my source and continue to do well while others are buying guaranteed loss making bonds, I tried to be objective to understand other peoples opinions and give advice but wow this is not a place for me,
 

Itchy

Frequent Poster
Messages
327
A negative yield is a guaranteed loss, the underlying value of the bond allowing for inflation may rise or fall and so does the income you cannot have it both ways, the ecb position on the bonds is loss making and if it continues it will need a bailout as the underlying value of the bond is at risk.
Fake news hmm then you provide a link to who is buying the negative bonds, I said in a post last year that we were heading into an economic storm which we are in and that the ecb was at the wheel which it is, I clearly know what I am talking about, I will stick to my source and continue to do well while others are buying guaranteed loss making bonds, I tried to be objective to understand other peoples opinions and give advice but wow this is not a place for me,
On the 19th of March the NTMA sold €0.5 billion @ -0.39%. They report that they received €1.245 billion of bids for those bonds 2.5x the nominal. Can you explain why the ECB as the ONLY purchaser of negative debt would make bids that cover the issue 2.5 times over?

 

RedOnion

Frequent Poster
Messages
4,069
Can you explain why the ECB as the ONLY purchaser of negative debt would make bids that cover the issue 2.5 times over?
Of course he can't explain.

This is a poster who previously stated that private sector should be putting their cash on deposit with the FED to avoid negative Interest rates.

There's no such thing as currency risk...
 
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