Pimco's Clarida Explains Demand for Long-Term Bonds

The video discusses the dynamics of long-term bonds, focusing on the impact of issuing 100-year bonds on existing 70-year bonds. It highlights the unintended consequences of such financial instruments, particularly for countries like Greece and Germany. The demand for these bonds is driven by insurance companies and investors with long-term liabilities, influenced by accounting practices and economic factors.

What is the significance of the 70-year bond in the context of the 100-year bond?

Discuss the relationship between interest rates and the value of long-term bonds.