#liquidities — Public Fediverse posts

"When governments and big companies borrow money, they don’t ask a bank for a loan. Instead, they sell IOUs to investors and promise to repay the money with a certain interest rate. If those IOUs are set to be repaid many years from now, they’re called #bonds".

"Rising prices make bond purchasers think that the nominal annual fixed interest they will get from the bond will be devalued over time by inflation, so the real return they get will fall. So bond holders will only buy bonds in the secondary market at lower prices to compensate. As we have explained above, falling bond prices means higher yields. Also governments issuing new bonds will have to offer higher fixed rates to attract new purchasers."

https://thenextrecession.wordpress.com/2026/09/04/bond-bust/

#credit #debt #liquidity #liquidities #securities #deficit #currency #economy #obligations #macroEconomy #funding