They will guarantee to pay you back LESS than you put in, and people are buying into it.
From the Wall Street Journal:
investors buying the bond today are agreeing to get paid back less than their investment, locking in a loss. Usually, this sort of thing is only done when investors are acutely worried about getting their money back. In that context, locking in a slight loss might look like a better option than keeping yourself exposed to a possibly giant loss some where else.
This is not a good sign.
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