.. acquire forex risk, and then exposure to US bond risk and not a great interest rate there.
It is admittely likely to push the pound down through the futures mechanism, but that may not be a bad thing. See Denmark: http://uk.reuters.com/article/2012/07/05/denmark-rates-idUKL6E8I5A8520120705 and more generally http://ftalphaville.ft.com/tag/negative-interest-rates/
(This sort of thing tends to upset readers of the Telegraph and Zero Hedge, which is another point in its favour)
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Date: 2013-01-28 02:58 pm (UTC)It is admittely likely to push the pound down through the futures mechanism, but that may not be a bad thing. See Denmark: http://uk.reuters.com/article/2012/07/05/denmark-rates-idUKL6E8I5A8520120705 and more generally http://ftalphaville.ft.com/tag/negative-interest-rates/
(This sort of thing tends to upset readers of the Telegraph and Zero Hedge, which is another point in its favour)