5 ms·
It's only government bonds that go negative. Corporate bonds will always provide a positive yield.
by all_blue_chucks 7y ago
It's only government bonds that go negative. Corporate bonds will always provide a positive yield.
- deleted 7y ago[deleted]
- shshehe 7y agoIf you can look into the future w that certainty you should trade stuff.
- kgwgk 7y agoExcept they don’t already in many cases. https://www.barrons.com/articles/yields-go-negative-on-corporate-bonds-not-just-government-debt-51562942845 https://www.barrons.com/articles/yields-go-negative-on-corpo...
- christophilus 7y agoApple issued negative bonds in some European country recently, if I understand this[0] correctly. Anyway, I don't think there's anything preventing a company from issuing negative bonds. Whether or not anyone would buy them is another question. [0] https://markets.businessinsider.com/bonds/apple_incsf-notes_201530-bond-2030-ch0271171693 https://markets.businessinsider.com/bonds/apple_incsf-notes_...
- samsonradu 7y agoWell one has to consider that it's pretty much the same big pool of money chasing both. This money pool thinks that German 10Y yield should be around -0.60%, while the Italian 10Y yields a juicy 1.62%. That says quite a bit about the future solvency issues around Italy. Bottom line is that if there are still positive yielding bonds in a market dominated by negatives (we're not yet there) the risk of default is priced in.