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Perpetuals.

This week (as usual) my world is consumed by work so it is difficult to not come up with ideas that are related. Markets have been seeing higher yields in fixed income, nasdaq down, cryptocurrency down, and inflation expectations higher.

The topic du jour is ‘debt cancelation’, but instead of this I wonder if sovereigns could just issue perpetuals. Not ultras like 100y, but true perpetual bonds that have imbedded call options. to make things interesting. Turn debt into equity… I’m tired of duration anyway.