February 5, 2015

A DEFLATIONARY EPOCH:

Very weird: Corporate bond rates go negative (Matt Egan, 2/05/15, CNN)

In an unprecedented event, the yield on Nestle's corporate debt went negative this week.

That means investors are essentially willing to pay for the right to park their cash in the safety of the Swiss chocolate company. The bonds might as well come with a note saying: "In Nestle we trust."

Companies are in such good shape there's no question of their defaulting and the dollar they pay you back in is worth more than the one you loaned them.
Posted by at February 5, 2015 4:39 PM
  

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