Comments on: The return of GDP bonds http://blogs.reuters.com/felix-salmon/2009/12/28/the-return-of-gdp-bonds/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: dWj http://blogs.reuters.com/felix-salmon/2009/12/28/the-return-of-gdp-bonds/comment-page-1/#comment-10504 Tue, 29 Dec 2009 03:37:40 +0000 http://blogs.reuters.com/felix-salmon/2009/12/28/the-return-of-gdp-bonds/#comment-10504 “the more successful the country becomes, the more it owes its creditors”

This is, of course, more or less the point; conversely, the less successful the country, the less it owes its creditors.

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By: wallstworker http://blogs.reuters.com/felix-salmon/2009/12/28/the-return-of-gdp-bonds/comment-page-1/#comment-10468 Mon, 28 Dec 2009 04:12:42 +0000 http://blogs.reuters.com/felix-salmon/2009/12/28/the-return-of-gdp-bonds/#comment-10468 Just because these trills may be volatile does not make them a completely useless product. If the product is available, the market will decide whether it is useful or not. What would be potentially more interesting is if this market could be subject to manipulation by national or supranational agencies… now that is an interesting prospect!

And in general it is very unlikely that the expected long-long term nominal growth rate of the economy would ever exceed the yield of this US perp bond. If anything, the presence of this additional security might help eliminate mispricing in the perp bond market!

wallstworker @ http://the-moneyverse.blogspot.com/

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