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 Orrin Judd at September 1, 2019 10:09 AM