Central Bank Sponsored Madness: Inversions On Negative-Yield Bonds
May 30, 2019 at 23:02 PM EDT
The longer you borrow, the more money you collect because the ECB pays you to borrow. On the 3-year bond, the ECB pays you 0.667% per year to borrow. If you borrow money for 3 months you collect an annualized 0.514% for borrowing.