David Zervos: Here's Who's Buying All That Debt at Negative Yields
Why are people buying debt at a guaranteed loss?
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David Zervos at Jefferies takes a look at negative yielding European sovereign debt in a note sent to clients today.
In the note he asks what seems like an obvious question: "Who in their right mind would ever buy this many negative yielding bonds? Or, put another way, how can an investor look themselves in the mirror after a day of hard work buying bonds with a 'guaranteed' loss?"