Gareth Vaughan says Westpac NZ's mammoth NZ$900 million five-year bond issue paying investors just 2.22% pa highlights expectations of even lower interest rates

Gareth Vaughan says Westpac NZ's mammoth NZ$900 million five-year bond issue paying investors just 2.22% pa highlights expectations of even lower interest rates

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Hmmm... 50bps real return. There will be a bloodbath if corporate risk premiums widen unexpectedly.

50bp real yield is good. Try Germany, France, Switzerland, UK, Japan etc etc - all deeply negative.

Yep:

But don’t we have to question “highly accommodative stance” going back at least to 2012 if not years yet before? Another of putting it, we’ve seen enough constant “stimulus” to know what it isn’t. There’s been no accommodation nor has anything been stimulated. Link

Wonder who were the buyers/investors ? Overseas funds/banks ?