An empty cafe terrace is seen at Puerta del Sol in Madrid.
Photographer: Denis Doyle/BloombergNegative interest rates are an odd fish in the world of finance given that they basically wreak havoc on a central tenet of investing; that investors will be compensated in some way for, you know, investing in things.
Bloomberg's Alastair Marsh reports today on POPYM 2007-2 A3G, a 2007 securitization deal that bundled together loans made to small businesses in Spain. Trustees for the bonds appear to be halting coupon payments to the debt's investors after a benchmark interest rate to which the deal is tied turned negative in recent days.