Negative interest rate borrowing. A boon for HC?
Aug 14, 2019 15:27:38 GMT -5
longsuffering likes this
Post by Pakachoag Phreek on Aug 14, 2019 15:27:38 GMT -5
Banks in Europe have started lending money for mortgages which carry a negative interest rate. In effect, the bank is paying you to borrow.
This is not good economically, in fact, its pretty terrible. (It reflects an expectation (fear) that certain assets, including some classes of financial assets, will depreciate in value. But for the borrower, great news!)
However, if negative interest rate lending takes hold in the U.S., perhaps HC can re-finance some/much/most/all of its debt If it could, that would reduce the $6+ million HC paid in interest on its outstanding debt in 2018.
This is not good economically, in fact, its pretty terrible. (It reflects an expectation (fear) that certain assets, including some classes of financial assets, will depreciate in value. But for the borrower, great news!)
However, if negative interest rate lending takes hold in the U.S., perhaps HC can re-finance some/much/most/all of its debt If it could, that would reduce the $6+ million HC paid in interest on its outstanding debt in 2018.
