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.”
Read More – Here