The Name is Bond
06/22/2012 | | Denmark, EU collapse, euro zone, investor fear, negative interest rates, negative yielding bonds, Switzerland
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!