“This is the greatest non sequitur in finance.”
— Jim Grant, editor of Grant’s Interest Rate Observer
The venerable Mr. Grant is referring to bonds priced to yield less than zero.
Deutsche Bank data shows negative yielding debt has topped $15 trillion, representing 25% of all outstanding bonds.
Negative interest rates are not good. They reflect and forecast trouble. They have serious consequences for investors and sovereign nations.
Who would buy negative yielding bonds? See the Greater Fool Theory.
Don’t be a fool and don’t be cruel. Spread some kindness today.