Bond Alchemists Turn Negative-Yielding Debt Into Tidy Profits
- OppenheimerFunds is ‘overweight duration,’ mainly in Germany
- Monetizing carry and roll in Europe ‘very attractive’: Mizuho
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For the canny investor, the most negative yields since 2016 have done little to dim the allure of German bonds.
While sub-zero rates imply a cost to own Europe’s safest assets, there are still ways to make money on those bunds. The most popular strategies are known as carry and roll, and OppenheimerFunds Inc. and Mizuho International Plc are using them right now in the market.