It's all the government and corporate bonds that still have negative yields eight years after the financial crisis, according to Torsten Sløk, the chief international economist at Deutsche Bank.
This is not normal, and it is a legacy of the amount of stimulus that global central banks had to pump into their economies after the recession, partly by buying massive amounts of government bonds. Investors bought these bonds for their perceived safety and because some institutions like banks were required to.
All this demand raised the bonds' prices, pushing their yields below zero in Japan and in some parts of Europe.
"These $8trn in negative yielding assets have forced investors around the world into all kinds of other asset classes such as IG credit, loans, mortgages, HY bonds, equities, and even emerging markets fixed income and equities," Sløk said in a note on Friday.
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Trader-G.Bozhidarov
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