Some ‘Mind-Boggling’ Numbers From The World Of Negative-Yielding Debt
Last week, the global stock of negative-yielding debt topped $13 trillion following a mini-"whatever it takes" moment from Mario Draghi, a dovish surprise from the Fed and cautious assessments of the outlook from the BoE and the BoJ.
It was, to quote BofA's Barnaby Martin, a "dove-fest".
Read more: Mario Draghi Delivers A Mini-‘Whatever It Takes’ In Sintra
Between a renewed commitment to accommodation from central banks and the deteriorating outlook for growth and inflation upon which tha
Who are the ones loaning out the money and negative interest rates? Help me understand why a lender would PAY someone to use their money? Why wouldnt someone put it into A dividend paying stock if nothing else? You would likely get a positive return there
well, remember, we’re not talking about average Joe investor trying to decide where to put $500 here.
plus, if you know central banks are going to perpetuate it, you can essentially front-run an expected continuation of the bond rally
Then the logical conclusion to your statement is that negative rates will perpetuate themselves forever.
Or until the inevitable government default , which will result in a a volcanic disaster for those who have chased yields to stupid numbers
Aren´t we, I have negative interest rates on my savings account (-40 bp) in Denmark, and my Swedish bank are trying making me pay as well, thus of course the negative rates effects average where average Joe / me makes his/mine investments. Damned if you do, damned if you don’t…
I think these couple of week’s reaction of gold is caused by Draghi being extra dovish.Japan’s still the same and the Fed’s got one foot in the dovish waters.Here’s a couple of questions:How long does it take to blow this negative yield bubble out?What may happen if we get some sort of inflation with these negative yielding debts?You can protect yourself against these by betting on gold,but i dont know what to say about the exchange rates