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Tuesday, May 10, 2022

#Austria 100-year #Bonds RIP

In 2020, Austria issued a government bond with a maturity date of 2120, aka Century 100-year government bond, with a coupon of 0.88%.

 

It was said:"Even though the bond has a very long maturity, its maturity profile would fit institutional investors like pension funds and insurance companies".

 

The banks mandated to handle the bond had orders of up to EURO 17.7 BN. but only EURO 2 BN. were raised.


It's all been downhill since then!


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