I've written about the century bonds before (#945143, https://thedailyeconomy.org/article/the-return-of-the-century-bond/)...
wait, did I NOT write about the Dec 2025 FT Alphaville piece on Austria's updated century bonds??
can't find it anyway... Undisc will keep me honest
Anyway, fiat is stupid and investors never rememberAnyway, fiat is stupid and investors never remember
Google is out here selling CHF-denominated(!) long-duration bonds.
Google’s parent company is offering five tranches of Swiss franc notes, according to people familiar with the matter, who asked not to be identified. The deal includes maturities of 3, 6, 10, 15 and 25 year bonds and is expected to price later today.
The tech giant is also set to sell a debut sterling offering on Tuesday, including an ultra-rare issue of a 100-year note, they said.
Yeah, they're ultra-rare for a reason: convexity goes to crazyness, duration becomes a masssiiiiiivvveee drag. Since they're in a different currency, there might be less of an (implicit, real) expropriation risk than usual with century bonds, becoming an FX bet with excellent underlying creditworthiness. BALL-SY. Guess you gotta build those AI compute farms??
The mega debt deal comes less than a week after Alphabet said its capital expenditures will reach as much as $185 billion this year — double what it spent last year — to finance its ambitions in artificial intelligence.
Global corporates have been turning to the Swiss franc bond market in recent years to diversify their debt raising programs.
Crazy! Any word on the interest rate they're paying?
they're issuing the century in London today, I think, so not yet. But judging from the dollar-placements they made yesterday (+ in November) it's around Treasury+100 bps. Totally insane
Are 100 bps 1%?
yes
Sounds like a status symbol. I can picture a conversation between rich elites bragging about owning a century bond.
LOL