This is four-ways terrible
Mark this one down as the worst investment idea I've seen in a long time.
- Euro-denominated
- Canadian bank bond
- Backed by Canadian housing
- Negative yield
Hapless Canadian bank CIBC today sold $1.8 billion in six-year covered bonds. They were issued at 100.054 and mature at 100.00, giving them an effective yield of -0.009%.
They're the first Canadian bank bonds to carry a negative yield. They were undoubtedly tailored to be flipped to the ECB.
What an absolute gong show.
Today's random Canadian housing sampler is this 1928 'character home' that's selling 'as is' and 'mainly for land value' with its 40ft of frontage or maybe because it's about 15 minutes from downtown.
Asking price is $1.7 million. Let's hope those mortgage bonds are backed by this gem!
