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Nobody in their right mind would buy negative yielding debt. Those long term negative rates aren't set by the market. Some pension funds are forced to buy thos
by mpalczewski 7y ago
Nobody in their right mind would buy negative yielding debt. Those long term negative rates aren't set by the market. Some pension funds are forced to buy those bonds, as well as quantitative easing.
- projektfu 7y agoI was discussing low interest rates, not negative. But usually in the US when we talk about a negative yield we're talking about a negative real yield not a negative nominal yield. There is a "zero lower bound". Perhaps an algorithm would buy a bond at a negative yield but probably not a person. Or, a central bank may purchase back bonds at negative yields to get the cash out there. Europe is a different story, I don't know entirely how they run their monetary system.