Blackstone COO Tony James indicated Thursday that he sees no real value for investors in 100-year bonds, an idea now being considered by the U.S. Treasury.
James digressed from the topic of his company's fourth-quarter earnings Thursday to field a question on whether such long-term notes would favor investors.
“Why would anybody buy 100-year bonds?” was his reply.
With interest rates inevitably set to rise, the Blackstone exec doubted investors would see the “century” bond’s low coupon as a fair trade.
Mexico recently took advantage of historically low interest rates to issue a 100 year bond. Even corporate issuers such as Goldman Sachs have used this tactic, according to the Wall Street Journal. James, on the other hand, seems to think the strategy won't work for the U.S. Treasury.