Invest
Who buys a negative yield bond?
By Fire By Fourty  •  December 1, 2020
Last Thursday, I came across an article in Business Times about UOB issued negative EUR Bonds and it was 2.6X oversubscribed, with order book of 1 billion EURO. It doesn’t make any sense to me in first glance. I always thought that negative bond yield is only something that’s theoretical, like negative oil prices, but didn’t expect that anyone could possibly be interested in buying a bond where the investor is guaranteed to receive lesser money the original price when bought and held through maturity. It generated strong demand and analysts predicted that there will be more to come for Singapore banks. Today, the total negative-yielding debt amounts to USD 17.05 trillion. It is almost equivalent to the total market cap of Nasdaq, which stand at USD 17.2 trillion as of Nov 2020! So I was curious on why are there so much demand in negative bond yield? Hence, I did some research and discovered some of the reasons why investors...
Read the full article
By Fire By Fourty
Join me on the journey to FIRE by 40! I share insights on investing, smart money habits, and achieving financial independence. Let's reach our goals together!
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance