Bloomberg | Negative-Yielding Debt Hits Record $14 Trillion as Fed Cuts

By August 1, 2019 November 20th, 2019 In The News

On the day Jerome Powell attempted to moderate market expectations for further easing, the world’s stockpile of negative-yielding bonds notched another remarkable record.

The Federal Reserve’s rate cut helped swell the total of all debt with sub-zero yields to more than $14 trillion for the first time. The market value of the Bloomberg Barclays Global Negative Yielding Debt Index closed at $14.1 trillion on Wednesday, after the biggest one-day jump in a month…

…It’s all spurring angst about the long-term impact of ultra-low rates on asset prices and the real economy.

“I think negative rates are simply negative for the economy,” Mark Okada, co-chief investment officer at Highland Capital Management, said on Bloomberg TV. “You don’t get the transmission mechanism to your banking system.”

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