Swiss Debt Is Now Repaying Itself [Zerohedge]
May 30, 2012 Leave a comment
The Swiss National Bank may have pegged the EURCHF (and as noted earlier, is progressively accumulating losses defending the barrier – even as EURCHF options are leaning further and further towards the peg breaking), but what about its bonds? At the current rate, Swiss debt, which is quite negative, with 2 year bonds now trading at record NEGATIVE rates, will repay itself quietly in a few short decades: ahhh the benefits of compounding. And for an example of how this is done, hours ago, the government issued debt at a rate of 0.62%. Oh sorry, we forgot the negative sign.
By Associated Press, Updated: Tuesday, May 29, 9:50 AM
GENEVA, Switzerland — Global investors are paying Switzerland to take their money as they look for safe places to park their capital.