Why would anyone buy a bond with a negative yield?
In: Economics
Many banks and insurers are required by their regulators to hold high quality bonds. If all of those are negative, you still have to buy them.
For those not forced into it by government action, still if the alternative is to build large vaults to pile up stacks of money and hire people to staff the vaults, and insure it, a slightly negative yield might be better than that.
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