Foreigners have less vivid memories of hyperinflation than locals do, one reason why they are more willing to lend long-term at fixed rates.
"Because the debt market is so thin right now, it is very difficult to find lenders who are able to lend long-term," said Scott Frier, chief operating officer of Abengoa Solar, which has two big U.S. plants under development.
With important changes to university funding, banks unwilling to lend long-term at fixed rates, and interest rates in the bond markets currently very low, the bond markets are an attractive financing option for universities.
The reasons are very similar to those applicable to universities – a need for capital expenditure (to fund new social housing), a squeeze on government money, banks unwilling to lend long-term at fixed rates, and interest rates in the bond markets very low.
But some investors say they will go too far at the expense of those who lend long-term money through unsecured bond markets, one of the most important sources of bank funding.
Handling them would also give Russia's banks a chance to learn such novel skills as judging risk and lending long-term.
And the easy money that banks can make by borrowing short-term from the central bank and lending long-term to the government is a public subsidy that is insufficiently appreciated.Pension liabilities are linked to bond yields.
Banks and other lenders make money by borrowing short term and lending long term.
