Shrinking negative yield bond pile: good news
- Umesh Desai
- Nov 15, 2019
- 1 min read
The pile of negative yield bonds in global markets is shrinking fast, triggering debate if this means the economic outlook is turning positive.
While signs of an economic recovery are yet to be confirmed, one thing is for sure: such a decline rescues the global economy from a world where savings are discouraged and borrowers do not pay for credit risk undertaken by lenders. (The trend also benefits China – more on that below.)
Across the world, the volume of negative-yield bonds including corporate debt has plummeted to around $11.41 trillion from a peak $17.04 trillion struck on August 29, according to Bloomberg data.
Read more at https://www.asiatimes.com/2019/11/article/shrinking-negative-yield-bond-pile-good-news/
Interesting perspective on how the decline in negative-yield bonds could reshape investor sentiment. It’s a reminder that financial systems—much like gaming economies—are constantly adjusting to new realities. I recently explored this concept of market adaptation while analyzing behavioral shifts using the LOL Skin Tool and it’s fascinating how both worlds reflect similar cycles of value correction.