You can now get a negative-rate mortgage in Denmark

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Give me that money

Give me that money
Jyske Bank said it will start issuing 10-year mortgages at a coupon of minus 0.5% and Nordea Bank will start offering zero-rate 20-year fixed mortgages, according to Bloomberg.

They spoke to Lise Nytoft Bergmann, the chief analyst at Nordea’s home finance unit: “It’s an uncomfortable thought that there are investors who are willing to lend money for 30 years and get just 0.5% in return,” she said. “It shows how scared investors are of the current situation in the financial markets, and that they expect it to take a very long time before things improve.”

This is madness. You can buy a house for 5m kr and pay them back less than that in 10  years. That has to end in a bubble.

ForexLive

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