Stock of negative-yielding global bonds has almost doubled in 2019
SINGAPORE (Aug 27): This year, global bond yields have gone in one direction - down. Week after week, the yields on more and more bonds cross below zero. Referencing the Bloomberg Barclays Global Aggregate Bond Index, the stock of negative-yielding debt has risen from US$8.3 trillion at end-2018 to US$16.2 trillion today. This has important implications for global investor behaviour. In their attempt to lock in some level of acceptable positive yields, investors have kept taking on more risks by extending duration and moving down the credit curve. A question of interest then, where can we still find positive yields?