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by spaceflunky 2500 days ago
What am I missing here? why are they doing this? There has to be some other gain somewhere else.
2 comments

It's fixed for 10 years. So yes, it's underperforming right now, but the fact that the yield curve has inverted gives them good reason to believe that there's going to be a recession in the next 10 years, so actually this is a relatively good return compared to losing money in the stock market or losing even more by buying the 10 year govenrment bond which right now is paying -0.58%.
why can't they just sit on the money? Wouldn't that perform better?
The gain is they will loose less than borrowers.