Analysis by Colchester

Global Bond Investing in an Era of Negative Interest Rates


foto tipos interes
Pixabay CC0 Public Domain. Invertir en bonos globales en una época de tipos de interés negativos

Author: IreneValiente

  1. As a result of the extensive quantitative easing programs undertaken by central banks, collectively it is estimated that they now hold approximately 80% of all negative yielding debt
  2. Over the short term the returns to investors from ‘falling’ negative-yielding bonds may be positive as bond prices continue to appreciate
  3. The diversifying return characteristics of sovereign bonds still holds true in a negative interest rate world
  4. Colchester overweights markets such as Norway, Singapore and Mexico and underweights the euro area