Stunning. Kind of gums up the valuation models, no?
What have the CenBanks wrought?
- The amount of negative-yielding corporate bonds almost tripled to $109 billion from a week ago
- Sovereign bonds with sub-zero rates climbed about 50% to $136 billion
Corporate heavyweights such as China Everbright Bank Co. and Petroleo Brasileiro SA, and sovereigns including Poland and Hungary have seen their rates drop below zero after a dovish turn at Federal Reserve and the European Central Bank sparked a mad dash for yield. Emerging-market bonds handed investors 3.5% over the past two months, more than a percentage point above returns on U.S. Treasuries, according to Bloomberg Barclays indexes. – Bloomberg