Covered bonds now at negative yield

09 March 2016

 

[private role='subscriber'] Just when you thought the fixed income world couldn’t get any stranger comes news that a German bank, Berlin Hyp, has sold the first covered bond with no coupon and at a negative yield. The bank issued €500 million of covered bonds at a yield to maturity of -0.162%. Investors are paying the bank to hold their money for the next 3 years. It’s a situation that could...

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