The percentage of bonds yielding less than zero

The adoption of negative interest rate policy by the European Central Bank and Bank of Japan, among others, has had a dramatic impact on bond markets. The chart from Bank of America-Merrill Lynch (BAML) breaks down the share of the global fixed income debt that currently trades with a positive yield compared to those yielding below zero.

According to calculations from BAML’s European credit strategy team, 23% of bonds globally yield less than 0% at present, up substantially on 13% level seen the beginning of the year. Based on the chart, that equates to around $9 trillion in bonds that are currently trading with negative yields, a figure that could grow even larger should the current trend be maintained.



Disclosure: This website is a collection of public articles, and this communication is for informational purposes only. Nothing herein should be construed as my opinion, solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from publicly available sources believed to be reliable but we do not guarantee accuracy or completeness. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional investment, legal, tax, or accounting counsel.




Leave a Reply

WordPress Themes