Maggio 31, 2012 EcoAnemia
Buying Schatz ? A DM trade
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.
