Analysis by Colchester

Global Bond Investing in an Era of Negative Interest Rates

Date:

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