World’s Rising Stock of Sub-Zero Debt Has Investors Adding Risk
- Sub-zero investment-grade pile set for fourth month of gains
- Investors are ‘desperately trying to find yield,’ Nordea says
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The world’s pile of debt with a negative yield -- bonds that cost investors money simply by holding them -- has climbed to near the $15 trillion mark, prompting investors to take on more risk.
Potential returns across the bond market have become increasingly scarce, following the coronavirus crisis and asset purchases by central banks. While still short of a $17 trillion peak last year, the mountain of negative-yielding debt is set to climb for a fourth month, matching 2019’s record streak, according to Bloomberg Barclays indices.