Follow

There's something seriously wrong in the global financial markets, when banks are offering mortgages at zero or negative rates.

> Jyske Bank, Denmark's third largest, has begun offering borrowers a 10-year deal at -0.5%, while another Danish bank, Nordea, says it will begin offering 20-year fixed-rate deals at 0% and a 30-year mortgage at 0.5%.
> Under its negative mortgage, Jyske said borrowers will make a monthly repayment as usual – but the amount still outstanding will be reduced each month by more than the borrower has paid.

"Danish bank launches world's first negative interest rate mortgage" Aug. 13, 2019 at theguardian.com/money/2019/aug

In the Canadian press, this is attributed to inverted yield curve, resulting from the trade war.

> Anyone buying that bond is willingly buying an investment that's guaranteed to lose money, but investors are more than happy to buy it up - because the fear is that alternative investments will fare even worse. [....]
> Those negative yields are filtering down into the economy in some truly jaw-dropping ways. A Danish bank this week started offering a negative yielding mortgage ...
"Free mortgages and bond yields turned upside down: trade war impacts veer toward the wacky" Aug. 17, 2019 cbc.ca/news/business/trump-tra

Sign in to participate in the conversation
QOTO Mastodon

QOTO: Question Others to Teach Ourselves. A STEM-oriented instance.

No hate, No censorship. Be kind, be respectful

We federate with all servers: we don't block any servers.