The Unintended Consequences of Negative Interest Rates
As inconceivable as it might seem, worldwide, about $17 trillion of bonds have negative yields, i.e. investors must pay to own them. In Denmark, banks actually offer home buyers negative interest rate mortgages, meaning they pay you to borrow to buy a house (although they probably charge hefty fees to make the transaction profitable).
Although the negative interest rate environment (NIRE) is a fact of life currently in Europe and Japan, it has not come to North America for now, or should we say “yet”.More