{"id":55554,"date":"2020-11-09T07:49:39","date_gmt":"2020-11-09T12:49:39","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55554"},"modified":"2020-11-09T07:49:39","modified_gmt":"2020-11-09T12:49:39","slug":"worlds-negative-yield-debt-pile-has-just-hit-a-new-record","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55554","title":{"rendered":"World\u2019s Negative-Yield Debt Pile Has Just Hit a New Record"},"content":{"rendered":"<div class=\"lede-wrap\">\n<div class=\"lede-text-v2 lede\">\n<div class=\"lede-text-v2__container\">\n<div class=\"lede-text-v2__content\">\n<h3 class=\"lede-text-v2__hed\"><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-11-06\/negative-yielding-debt-hits-record-17-trillion-on-bond-rally?fbclid=IwAR256gmh-oRLaxsYnfjSQJljlv5LUzSr6ryCguvZtfxKBLMoht7xpMqFurI\">World\u2019s Negative-Yield Debt Pile Has Just Hit a New Record<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-well-v2\">\n<section class=\"main-column-v2\">\n<ul class=\"abstract-v2\">\n<li class=\"abstract-v2__item\">\u00a0$17 trillion of investment-grade debt now has sub-zero rates<\/li>\n<li class=\"abstract-v2__item\">\u00a0U.K. and Australian central banks expand bond-buying programs<\/li>\n<\/ul>\n<div class=\"body-columns\">\n<div class=\"middle-column\">\n<div class=\"body-copy-v2 fence-body\">\n<aside class=\"content-accessories content-accessories--left-rail\">\n<div class=\"text-to-speech\">The world\u2019s stockpile of negative-yielding debt has swelled to a record in the wake of the U.S. election, as investors lower expectations for a fiscal splurge and turn their focus back to monetary support.<\/div>\n<\/aside>\n<p>The market value of the Bloomberg Barclays Global Negative Yielding Debt Index rose to $17.05 trillion on Thursday, the highest level ever recorded and narrowly eclipsing the $17.04 trillion it reached in August 2019.<\/p>\n<p>Almost $600 billion of bonds have seen their yields turn negative this week, meaning 26% of the world\u2019s investment-grade debt is now sub-zero. Thanks to the slew of global issuance in 2020 as governments and companies wrestle with the impact of the coronavirus, that remains below 30% peak reached last year.<\/p>\n<figure id=\"395\" class=\"figure-expandable\" data-align=\"center\" data-id=\"365825187\" data-image-size=\"full\" data-image-type=\"chart\" data-type=\"image\">\n<div class=\"image\" tabindex=\"0\" role=\"button\" aria-label=\"Open image in viewer\">\n<div id=\"lazy-img-365825187\" class=\"lazy-img\"><img decoding=\"async\" class=\"lazy-img__image loaded\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/izV9T1rdnLek\/v2\/pidjEfPlU1QWZop3vfGKsrX.ke8XuWirGYh1PKgEw44kE\/490x-1.png\" alt=\"Global supply of bonds with negative yields hits record $17 trillion\" data-native-src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/izV9T1rdnLek\/v2\/pidjEfPlU1QWZop3vfGKsrX.ke8XuWirGYh1PKgEw44kE\/-1x-1.png\" data-img-type=\"chart\" \/><\/div>\n<\/div>\n<\/figure>\n<p>The borrowing binge has been mostly met with trillions of dollars of quantitative easing that suppress yields. Just this week, the\u00a0<a title=\"BOE-Sunak Double Act Attempts to Boost Ailing U.K. Economy (1)\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-11-05\/boe-delivers-bigger-than-expected-qe-boost-for-slumping-economy\" target=\"_blank\" rel=\"noopener noreferrer\">Bank of England<\/a>\u00a0and\u00a0<a title=\"Aussie QE Program Scale Seen Nearing Fed\u2019s as Buying Begins (1)\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-11-04\/scale-of-australian-qe-program-seen-nearing-fed-s-as-buying-begins\" target=\"_blank\" rel=\"noopener noreferrer\">Reserve Bank of Australia<\/a>\u00a0announced plans to expand their bond-buying programs, while the Federal Reserve discussed a\u00a0<a title=\"Powell Says Fed Discussed Bond Purchases, Holds Rates Near Zero\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-11-05\/fed-stays-on-sidelines-with-election-results-remaining-uncertain\" target=\"_blank\" rel=\"noopener noreferrer\">shift<\/a>.<\/p>\n<p>For investors watching yields vanish, it\u2019s become a dilemma: make riskier bets in order to boost income or accept lower returns.<\/p>\n<p>\u201cThere are still return hurdles that investors will try to reach but that is not something you can get in a large share of fixed income products at this point,\u201d said Richard Kelly, head of global strategy at Toronto-Dominion Bank. \u201cThis will drive a further push out the risk curve for investors, be that equities, credit, or long-end bonds.\u201d<\/p>\n<p>While much of the sub-zero debt pile is denominated in euros and yen, dashed expectations for a massive fiscal spending package under a unified Democratic government are also whittling down Treasury yields.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>World\u2019s Negative-Yield Debt Pile Has Just Hit a New Record \u00a0$17 trillion of investment-grade debt now has sub-zero rates \u00a0U.K. and Australian central banks expand bond-buying programs The world\u2019s stockpile of negative-yielding debt has swelled to a record in the wake of the U.S. election, as investors lower expectations for a fiscal splurge and turn [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[83,124,30549,195,30550,26100],"class_list":["post-55554","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bloomberg","tag-central-banks","tag-cormac-mullen","tag-debt","tag-john-ainger","tag-negative-yielding-debt"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55554"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55554\/revisions"}],"predecessor-version":[{"id":55555,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55554\/revisions\/55555"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}