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  1. #1 Why negative interest? 
    Senior Member old dog's Avatar
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    Can anyone explain to me why anyone would buy a bond with a negative interest rate? I just can't get my brain around this concept.

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  2. #2  
    Senior Member Tecate's Avatar
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    Here’s $10,000 but only if you promise to pay me back $9,500 later... Brilliant!
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  3. #3  
    Senior Member Dlr Pyro's Avatar
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    Quote Originally Posted by old dog View Post
    Can anyone explain to me why anyone would buy a bond with a negative interest rate? I just can't get my brain around this concept.

    I'm sure those would sell very well in DUmmylandia
    "Even if Trump didn't pay Russian hookers to pee on one another to defile a bed the Obamas once slept on it sounds like something he would do and that's all that matters." DemocratSinceBirth, Wed Jan 11, 2017, 09:32 AM

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  4. #4  
    Senior Member DumbAss Tanker's Avatar
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    Basically no buyers except other government entities and billion-dollar fund managers that have a particular reason to take a paper loss. To anyone with normal, straightforward commercial intentions and not in a bear market it basically means 'Do not buy this.' If the economy entered drastic deflation it would make sense in a way, but not as much as just holding cash.
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