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submitted 1 day ago by yogthos@lemmygrad.ml to c/news@hexbear.net
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[-] DonLongSchlong@lemmygrad.ml 14 points 1 day ago

Bro wtf does that title even mean lmao. Money is so fucking fake

[-] Transform2942@lemmy.ml 24 points 1 day ago* (last edited 1 day ago)

Translation:

Deutsche Bank

Comically large and evil German bank

issues

Is offering for sale

RMB 3.5bn multi-tranche Panda bond

A bond "denominated" in Remnimbi, valued at approximately ~500M USD (and other irrelevant details)

in China Interbank Bond Market

In practice this means:

  • they are "borrowing" yuan
  • they are "selling" their debt on a Chinese debt market
  • they will repay the borrowing in more yuan, implying they anticipate future income in yuan

Like yogthos says it's a pretty big deal in the "dedollarization" story

[-] DonLongSchlong@lemmygrad.ml 9 points 1 day ago

Who wants to buy debt? What value does owing someone money have😭😭

[-] Owl@hexbear.net 14 points 1 day ago

"buying debt" means buying the part where someone owes you, not buying the part where you owe someone.

Ie, Alice owes Bob $1000 and Carmen buys the debt from Bob, so now Alice owes Carmen $1000

[-] DonLongSchlong@lemmygrad.ml 7 points 1 day ago

Ohhhhh. Thank you!

[-] TraschcanOfIdeology@hexbear.net 9 points 1 day ago* (last edited 1 day ago)

Also debt is used for many things for businesses, like to stabilize cash flows, or to reduce risk.

Let's say Carmen owns an ice cream truck, so she knows that when summer ends she might earn less money. She buys the debt from Bob (who needs money now), so she can collect from Alice come winter, when she needs the money.

It's also used to inflate asset numbers. Carmen is applying for a loan to improve her ice cream truck, but she needs to put some of her assets as collateral. In theory she could count Alice's debt as money she has the right to, but doesn't have right now, so she can say to the bank "hey here's 1000 I expect to have this winter as colateral for the loan"

[-] DonLongSchlong@lemmygrad.ml 5 points 1 day ago

Okay nice. This part makes more sense now. Thank you!

[-] Transform2942@lemmy.ml 7 points 1 day ago* (last edited 1 day ago)

Just to answer your basic question a bond has an interest rate which is called the "yield" and it means if you purchase and hold the bond to "maturity" you will get back in total more money than you originally paid for the bond.

Bonds are the primary way large institutions (including governments) borrow money and also create the foundation for all other loans (because of how banking works)

[-] DonLongSchlong@lemmygrad.ml 3 points 1 day ago

I appreciate you trying, but it seems like in order to explain some words you need to use 3 other words that need explanations haha

I have ecactly zero knowledge on banking or whatever

[-] Transform2942@lemmy.ml 1 points 1 day ago

It can definitely be that way unfortunately...

There's a lot of counterintuitive concepts in international finance and they kind of build on each other

[-] yogthos@lemmygrad.ml 23 points 1 day ago

It's actually very significant because it means Europe is actively investing in China now outside the dollar system.

[-] WilsonWilson@hexbear.net 7 points 1 day ago

They're just making up words now

[-] RNAi@hexbear.net 7 points 1 day ago

Normal black coffee please

this post was submitted on 06 Jun 2026
40 points (100.0% liked)

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