By Marc Lichtenfeld This is an odd time in financial history. At least 11 countries have negative yields on their 10-year bonds, including Japan, Germany and France.
Investors have poured $17 trillion into negative-yielding bonds.
Think about what that means for a minute. Investors are so worried about rates falling even further that they’re willing to accept a guaranteed loss over 10 years (not to mention the decrease in buying power due to inflation).
Either that or they’re speculating on the Greater Fool Theory – that rates will go lower and someone will buy their negative-yielding bonds at a higher price than they are today.
(Bond prices …read more
