This is effectively saying that someone is willing to loan you 1mil, and pay you negative interest on a loan of 1.1mil as long as you pay a fixed payback per month. So end of line you still payed more than you got, but every month instead of paying a bit more than your fixed payback, it’s slightly lower. Bank still makes money selling you the loan, investors still get more money back than they invest. Only thing noteworthy is that some of the math that used to be related to the fixed monthly positive interest is now covered by the upfront rate of getting the loan.
No, they don’t. That’s the point. The reference rate is negative because the investors are buying bonds which will lose money.
This link shows loans available at my mortgage provider: https://netbank.totalkredit.dk/netbank/showStockExchange.do
Or maybe not, but the risk exists. With a negative-yielding bond at least you know what you’re getting (as long as there is no default!).
Brinks will store it for you for 0.72%/yr. https://goldsilver.com/vault-storage/
