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A record of USD 13 trillion bonds are yielding negative, by Blackfort CIO Dr. Andreas Bickel

A record of USD 13 trillion bonds are yielding negative, by Blackfort CIO Dr. Andreas Bickel


A record of USD 13 trillion bonds are yielding negative, by Blackfort CIO Dr. Andreas Bickel

Financial repression at work: i.e. transferring wealth from creditors (private sector) to debitors (public sector). Globally around USD 13 trillion of bonds or in Europe around 75% of all government bonds have a negative yield. For instance, German government bonds up to a maturity of 15 years have a negative yield. In Switzerland for a 30 year government bond one gets an astonishing plus 0,02% yield. But what is really scary, so far neither the ECB nor the US Fed have started their next cutting cycle. Only by verbal intervention, we have seen a tremendous rally in bonds and in equities. This is unfortunately only the beginning. The new normal for the Eurozone could look similar to what we have seen in Japan for the last 30 years. How to deal with it as an investor: Buy real assets.




Published: 04.07.2019 by Blackfort CIO Dr. Andreas Bickel



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