Assante Team

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negative yield

Fixed income - still a traditional hedge?

Answering Your Questions on Fixed Income

Markets | Dec 2, 2019

What are your thoughts on the fixed-income market today? The fixed-income market continues to present significant challenges for income-seeking investors. If held to maturity, negative-yielding bonds guarantee a negative return and low-yield bonds guarantee a low return. We believe a buy-and-hold strategy will not work in the current environment; investors…

Negative-yielding debt reaches $17 trillion

Markets | Sep 26, 2019

Negative bond yields occur when issuers of debt are paid to borrow. This unusual situation has taken financial markets by storm as negative-yielding debt recently reached an unprecedented $17,000,000,000,000 globally. What drives negative yields? The Bank of Japan and the European Central Bank have set interest rates below zero for…