Europe’s Crisis-Fighting Fund Gets Paid to Borrow for Nine Years
- ESM bond issue is its longest yet at a negative yield
- Finland’s 10-year bond is latest to see yield drop below zero
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Investors are paying for the privilege of bailing European countries out of their various crises.
The European Stability Mechanism, which acts as the euro region’s financial backstop, sold nine-year bonds, the longest-maturity debt they’ve issued at a negative yield. That shows how keen money managers are to find somewhere safe to invest their money -- even if this means they get back less on maturity than they paid in.