September 1, 2019

THE DEFLATIONARY EPOCH:

The Unstoppable Surge in Negative (John Ainger, August 30, 2019, Bloomberg)

Thirty percent of all investment-grade securities now bear sub-zero yields, meaning that investors who acquire the debt and hold it to maturity are guaranteed to make a loss. Yet buyers are still piling in, seeking to benefit from further increases in bond prices and favorable cross-currency hedging rates--or at least to avoid greater losses elsewhere.

Those yields are more likely too high than too low.

Posted by at September 1, 2019 10:09 AM

  

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