Pubblicato il 31 Maggio 2012 da Veronica Baker
Buying German debt at these levels isn’t just about safely getting your money back : it’s simply a € break-up trade.
If you’re in Greece ( or anywhere else in the periphery, like Portugal,Spain or even Italy ) you are ( rightfully ! ) worried that your financial assets could be forcibly converted to a new currency.
It’s an outlying scenario , sure ; but it’s a possibility.
As it becomes more likely, the Schatz may fall significantly into negative territory.
The question you need to ask is: if € does break up, how much more valuable will DM be compared to peseta or lira?
Look at the Schatz paying zero interest !