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home / news releases / BWX - Negative Interest Rates: Carry An Umbrella At All Times


BWX - Negative Interest Rates: Carry An Umbrella At All Times

"Bankers Stunned as Negative Rates Sweep across Danish Mortgages."

Yes, this sensationalistic headline is true. Negative interest rates are available in Denmark on adjustable-rate mortgages with durations under five years. So after paying some upfront fees, borrowers on these loans receive a check from the bank every month as a thank you payment.

How can this be? Why would lenders pay borrowers instead of charging them interest? To describe this upside-down world, the Mock Turtle in Alice's Adventures in Wonderland would say "Well, I never heard it before but it sounds uncommon nonsense."

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Stock Information

Company Name: SPDR Bloomberg Barclays Intl Treasury Bd
Stock Symbol: BWX
Market: NYSE

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