While everyone else is considering the implications of a -25 bps rate it is time for the astute to look down the road. New forms of bonds with larger and larger negative coupons will emerge. Governmental entities that are quick to adopt this new type of bond will see their deficits evaporate. Which large investment house will be the first to offer a High Extortion Bond fund? Diversifying was important with High Yield Bonds and there is no doubt that financial advisors would urge using a High Extortion Bond fund in order to control risk. If a High Extortion Bond goes belly up your checks might be returned uncashed. If one insists on purchasing a specific High Extortion Bond shouldn't there be some form of insurance one can buy to protect against this hopefully rare scenario? In order to set the insurance rates appropriately we would also need someone like Moody's to analyze each High Extortion Bond and give us reasoned default projections on them. Get ready for the new frontier of finance!