In June 2015, I published an article entitled “A capital guarantee: but at what price?” in which I explained that in an environment of ultra-low interest rates capital-guaranteed products had lost their ‘raison d’être’.
At the time the 10-year OAT (French government bond) was yielding a little less than 1.30%. Since then, the ECB’s massive programme of bond purchases has driven down the yield of the 10-year OAT to a level of about 0.30%.
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BNPP IP: Guarantees are now worthless
