QE, falling interest rates mean MNCs now get paid to borrow
Investors are paying for the 'privilege' to loan to the most solid corporations, say analyst
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GERMANY and France have been able to borrow at negative rates for some time, meaning investors are paying to loan Berlin and Paris money, but with interest rates falling further as the ECB gears up to launch quantitative easing, multinationals are also now getting paid to borrow.
The phenomenon is a result of investors seeking a safe place to park their money in debt markets where interest rates have been dragged down to ultra-low levels.
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