Did you hear the one about the negative-coupon mortgage-backed bond?

Copenhagen | In the world’s biggest covered-bond market, a Danish bank says it’s now ready to sell 10-year mortgage-backed notes at a negative coupon for the first time.

Source: Did you hear the one about the negative-coupon mortgage-backed bond?

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Does this make ANY economic sense at all?  I’m baffled.  As soon as they off me  a “negative” interest rate, I think I’ll take it.  They are going to pay you to take a mortgage?  Maybe I’m old fashioned, but I do NOT understand the logic of this.

Maybe it’s a version of Three Card Monte I’ve never seen, but I’ve been around a long time?

If you understand it, please explain it to me, but use small words, I’m real old.

Remember the sources of my education! I’m just a fat old white guy retired injineer who’d now a poor old senior citizen on a fixed income with:
* Law “degree” from watching Judge Judy;
* Medical “degree” from watching Doctor Phil;
* Building “degree” from watching “Holmes on Homes”;
* Investing “degree” from reading about Bernie Made-off;
* Finance “degree”from listening to Ric Edelman;
* sensitively managing Human Resources from watching Chef Ramsey; and
* creating loving / caring human relationships from studying the movie roles of Gunny Ronald Lee Ermey

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