Market Overview

Nearly $12 Trillion Worth Of Bonds Across The World Are Yielding Negative Rates

Related TLT
Prolonged Shutdown Raises Recession Risk: ETFs To Consider
Mike Khouw Sees Unusual Options Activity In The TLT
Weekly Commentary: Monetary Disorder 2019 (Seeking Alpha)
Related BND
Vanguard Adds To Fixed Income Lineup With Total World Bond ETF
How A Negative Yield Curve Could Impact Your Finances
The Fortune Teller's Predictions For 2019: S&P 500 At A Critical Juncture (Seeking Alpha)

Demand for bonds that result in a loss if held to maturity appears to be in high demand, at least according to a Bloomberg report.

The total face value of bonds and sovereign debt that yield negative rates rose to $11.6 trillion as of the end of September, which is 6.1 percent higher compared to the end of August but lower than June's $11.9 trillion peak.

Related Link: Why Would Anyone Buy A Negative Yielding Bond? Simple: To Earn A Profit

The data was compiled by the Bloomberg Barclays Global Aggregate Index, which tracks $48 trillion worth of debt across 24 developed and emerging economies.

Bloomberg noted that the majority of negative yielding debt comes from Japan and was valued at $5.7 trillion. German and France each accounted for $1.4 trillion and the rest of Western Europe accounted for $2.7 trillion. The remaining countries combined for just $0.5 trillion.

The value of negative yielding debt shrank the most in Italy by 9 percent to $361 million and Denmark's negative yielding debt expanded the most by more than one third to $104 million.

As a whole, corporate debt accounts for just 1.7 trillion worth of negative yielding debt. Among those corporations, finance companies issued nearly 80 percent of all negative yielding corporate debt accounts.

Posted-In: Bloomberg Bloomberg Barclays Global Aggregate Index corporate debt Negative Yielding DebtBonds Markets Media


Related Articles (BND + HYG)

View Comments and Join the Discussion!

Cognizant's Surprise Announcements Leave Investors Scratching Their Heads; $50 Level Attractive

Deutsche Bank Upgrades 7 Precious Metals & Mining Stocks