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Italy’s 50 Year Bonds Are 6x Oversubscribed As Investors Lose Their Minds
Not Worried About 100 Year Bonds
As for century bonds, which are among the riskiest debt securities in the world, they would “get slaughtered” if the Fed shocks markets by not lowering borrowing costs at the end of July, according to Hari Hariharan, chief executive officer of NWI Management. Is he really worried this will happen? No: he likes Petrobras’s 100-year debt on the possibility of bond buybacks.
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Not worried about a hawkish surprise is also Tina Vandersteel, money manager at GMO in Boston, who prefers Mexico’s 100-year securities over Argentina’s for the same reason as Chamorro. Assuming a global monetary ice age isn’t fully priced in, yet, century bonds would be the bonds that benefit the most as interest rates across the entire world sink into negative territory.