Jun
22

The Name is Bond

The ongoing euro-zone debt crisis has been a borrowing bonanza to both Switzerland (not part of the EU) and Denmark (part of the EU but not the euro-zone). On Tuesday, Denmark issued 2-year bonds with a yield of -0.223% while Switzerland issued 3-month debt yielding -0.79%. This means investors will be repaid less than they originally lent. Talk about investor fear! For these two governments, it literally pays to borrow!

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