Negative interest rates have split the world’s central banks into camps: the believers, agnostics, and atheists. This lack of consensus has itself become an untenable risk. Deploying negative interest rates as a strategy will likely result in unintended consequences and new types of financial co-morbidities. The financial, social and political risks are both sizable and poorly understood.
Perhaps the most compelling reason for central bankers to implement NIRP strategies is there are no other tools left in the monetary toolbox. And that’s not a very good reason. But as Samuel Johnson said, “Nothing focuses the mind like a hanging.”
Follow our ongoing series, “The Real Risks of Negative Interest Rates, Unintended Consequences, and Financial Co-morbidities” at www.negativeinterestrates.com.
Topics will include:
- Negative interest rates, cap rates, multiples, net present value and IRRs
- Negative interest rates, the fed funds rate and the 10 year
- Negative interest rates and the coercive nature of maturity extension
- Negative interest rates and asset class reallocations
- Negative interest rates and refinancing and rollover risk
- Negative interest rates and actuarial assumptions
- Negative interest rates and IRAs
- Negative interest rates and the yield curve
- Negative interest rates and credit spreads
- Negative interest rates and hedging
- Negative interest rates and market illiquidity
- Negative interest rates and mark-to-market
- Negative interest rates and mortgage securities
- Negative interest rates and the rating agencies
- Negative interest rates and the regulators
- Negative interest rates and multi-legged interest rate/currency swaps
- Negative interest rates and consumer and investor expectations
- Negative interest rates and the carry trade trade
- Negative interest rates and credit default swaps
- Negative interest rates and currency risk
Join us!