Emerging Market Sub-Zero Corporates

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

This entry was posted in Capital Flows, Credit, Uncategorized and tagged . Bookmark the permalink.

1 Response to Emerging Market Sub-Zero Corporates

  1. Pingback: QOTD: Bund Dearth | Global Macro Monitor

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