This blog has a new address:
http://rashaadtayob.com/
Asking a fixed income manager about negative interest rates is like getting a taxi driver’s opinion on self-driving cars. You know that they are going to tell you that it’s a bad idea. But with over $5 Trillion worth of bonds having negative yields they are now a firmly established reality. Japan recently joined the negative interest rate club alongside Sweden, Switzerland, Denmark and the 19 countries that fall under the European Central Bank. These are a few thoughts on how we got to the scarcely believable point where 30% of the Global Bond Index now effectively entails the bond investor PAYING interest.
Click on the link for the blog post:
http://rashaadtayob.com/2016/02/23/negative-interest-rates-or-getting-paid-to-borrow-money/
