The Napier Euro High Yield Capital Guarantee Fund (discussed in the November 12th edition of The Solid Ground) is almost ready for launch. It offers a unique combination of attributes to investors. It has significantly better risk/reward characteristics than both deposits and government debt securities. In short, it is a room full of Euro banknotes.
The launch of the fund will clearly mark the limits to monetary policy and thus the end to QE in Europe. The fund’s many attractive features include:
a small negative yield (my fee), but it yields more than Euro bank deposits and most Euro denominated government debt securities.
the assets are a liability of the central bank and not the commercial banks. While bank deposits, above the level guaranteed by governments, can be bailed-in and frozen during any bank reconstruction, the banknotes nominal value is assured by the central bank. The fund thus offers significant capital protection and enhanced liquidity to any bank deposit.
Source Article from https://www.freedomsphoenix.com/News/176054-2015-05-09-russell-napier-explains-whats-in-store-for-gold-if-cash.htm?EdNo=001&From=RSS
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