Italy’s Decision Not to Pay Negative Coupons ‘Natural’: BofAML
Source: BFW (Bloomberg First Word)
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Alexander Batchvarov (Merrill Lynch International)
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(Bloomberg) -- Italy’s decision not to impose a negative coupon on its floating-rate notes is “only natural” as euro-zone countries move to a negative interest-rate environments, Bank of America Merrill Lynch analyst Alexander Batchvarov says in e-mailed comments.
Alert: HALISTER1- Sees this clarification becoming a standard as we move to negative rates
- “A bond is supposed to pay interest to investors, rather than charge them interest,” he says, pointing to other countries such as Denmark doing the same
- NOTE: Italy fin min said today a zero coupon would be applied even if the spread implies negative rates on the securities
Source: BFW (Bloomberg First Word)
People
Alexander Batchvarov (Merrill Lynch International)
To de-activate this alert, click here
UUID: 7947283