Monday, October 5, 2020

WSJ: Five Reasons Why Investors Might Buy Negative-Yielding Debt

 By SIMON CONSTABLE

Why would anyone want to buy a bond with a negative yield?

It’s a good question especially given that experts estimate that there are almost $16 trillion of bonds in the world that have negative yields. That’s a lot of securities that investors have purchased knowing that they’ll get back less money than they invested. It means that a one-year bond with a face value of $1,000 that yields minus 1% will leave the investor with $990 when the bond matures. Read more here.

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