Sub-Zero Yields Start Taking Hold in Europe's Junk-Bond Market
- Number of negative-yielding euro junk bonds rises to 14 from 0
- Expectations of further monetary stimulus depress yields
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Central bankers hinting at more monetary stimulus have depressed yields so much that even some European junk bonds trade at levels where investors have to pay for the privilege of holding them.
The number of euro-denominated junk bonds trading with a negative yield -- a status until recently associated with ultra-safe sovereign borrowers -- now stands at 14, according to data compiled by Bloomberg. At the start of the year there were none.