Tag Archives: Swiss government gets paid to borrow

© Radomír Režný | Dreamstime.com Imagine borrowing CHF 105,500 but only having to repay CHF 100,000 in 20 years time, including interest. You’d get an interest free loan plus an extra CHF 5,500 to keep. This is what the Swiss federal government will do on 20 December 2019, except it will borrow CHF 196.6 million by issuing zero interest bonds at a price of 105.5%. The government will generate a CHF 10.25 million windfall. In addition, investors interested in this...

Imagine borrowing CHF 105,500 but only having to repay CHF 100,000 in 20 years time, including interest. You’d get an interest free loan plus an extra CHF 5,500 to keep. © Radomír Režný | Dreamstime.comThis is what the Swiss federal government will do on 20 December 2019, except it will borrow CHF 196.6 million by issuing zero interest bonds at a price of 105.5%. The government will generate a CHF 10.25 million windfall. In addition, investors interested in this issue of zero-interest...