Mod. Please delete. I searched on the word negative in the title and nothing showed up but yet it is a dupe. Sorry
That sorry state of affairs cannot possible last.
People invest in any instrument to make money. Not lose it. Sure, a few people will do a little of this to get the capital loss tax write off, but that'll be small potatoes.
It’s Bush’s fault!!!
What kind of idiot buys a security that is already losing money?
I have some things I would like to sell.
You mean deflation? The only reason why you'd pay $102 so that you can get paid back $100 later is because you expect those future dollars to be worth more than they are today, and you have nowhere else to park your $100 safely.
Horse puckey. These bonds were bought at a price that would make thier yeild negative at today’s inflation rate. The people that bought them expect inflation and expect to make money from owning them relative to other investments. It does show that they are willing to take a slight loss relative to inflation to find an inflation protected investment (I think they can’t make up for the -.55% even if inflation screams upward — they’ll always be a little behind inflation).
Inflation? Sounds one hell of a lot worse. This is pure insanity.
Boy I bet these sell like hotcakes!
Hollyweird liberals line up!!
By the way, I don’t know if you noticed, but I think I was wrong above. If the inflation rate heats up people will probably pay a premium in the after market for these bonds, so the -.55% would be made up in an inflationary environment and the buyers of the bonds could do better in return than the official inflation rate.