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Why would people not buy extra properties with these mortgages “just in case”? Especially the 10 year one seems low risk and worst case you have a property after 10 years?
Earlier quoted context omitted.
This was my reaction too. If any Danish banks are reading this and want to make a juicy half percent, hit me up.
You'd be taking on currency exchange risk, as the Danes will want to loan you Euros but you'll likely be paying back the loan in USDs.
Swapping loans is fairly trivial, and would leave one with a mortgage rate competitive with American ones.
This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] TFA suggests this is due to structural factors--institutions that are required by law to own AA/AAA bonds. Is this some deficiency in the law or corporate governance, that cash in this circumstance isn't considered a substitute for a negative-yield bond? Its net present value would b…
> This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] We've been on a 10 year run of growing economies after the Great Recession and stocks/equities have price-to-earning (P/E) ratios that are really high—as high as what they often were before other corrections and/or recessions: * https://www.macrotrends.net/2577/sp-500-pe-ratio-pric…
This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] TFA suggests this is due to structural factors--institutions that are required by law to own AA/AAA bonds. Is this some deficiency in the law or corporate governance, that cash in this circumstance isn't considered a substitute for a negative-yield bond? Its net present value would b…
> This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] We've been on a 10 year run of growing economies after the Great Recession and stocks/equities have price-to-earning (P/E) ratios that are really high—as high as what they often were before other corrections and/or recessions: * https://www.macrotrends.net/2577/sp-500-pe-ratio-pric…
Can you get a Danish loan to fund the purchase of a foreign (ehem U.S.) residence?
This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] TFA suggests this is due to structural factors--institutions that are required by law to own AA/AAA bonds. Is this some deficiency in the law or corporate governance, that cash in this circumstance isn't considered a substitute for a negative-yield bond? Its net present value would b…
There is no risk free and cost free way to hold large amounts of cash. You can deposit it at a bank, but the bank could go under. You could keep paper cash in a vault but you’d have to pay to guard and maintain the vault. There’s no actual way to just “hold cash”.
Why would people not buy extra properties with these mortgages “just in case”? Especially the 10 year one seems low risk and worst case you have a property after 10 years?
This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] TFA suggests this is due to structural factors--institutions that are required by law to own AA/AAA bonds. Is this some deficiency in the law or corporate governance, that cash in this circumstance isn't considered a substitute for a negative-yield bond? Its net present value would b…
There are a few reasons: 1) Say I'm a Danish pension fund looking to park my money somewhere super safe . I can buy US government bonds that pay 1-2.5% (depending on length to maturity) and indeed many foreign investors will do this. But I still have some risk there, because what happens if the value of the dollar goes down against the Euro and now I lose 5% instead of making 2%? So I look for something denominated i…
Banks in Europe are charging people a percentage to hold their money? That's a bit of context that helps, since that is unheard of in the US. At worst they charge flat fees, and that's usually for having too little money.
This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] TFA suggests this is due to structural factors--institutions that are required by law to own AA/AAA bonds. Is this some deficiency in the law or corporate governance, that cash in this circumstance isn't considered a substitute for a negative-yield bond? Its net present value would b…
> This seems like a good place to ask the question: how is it that we're seeing $15T of bonds worldwide trading with negative yields? [1] We've been on a 10 year run of growing economies after the Great Recession and stocks/equities have price-to-earning (P/E) ratios that are really high—as high as what they often were before other corrections and/or recessions: * https://www.macrotrends.net/2577/sp-500-pe-ratio-pric…
(In Norway banks only guarantee up to about $200k in the event of a bankruptcy)