Bond Wizards Find Exotic Ways to Profit From Negative Yields
- Banks sell structured notes that benefit from sub-zero rates
- Exotic products luring ultra-rich and real-money investors
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It’s the bond market equivalent of alchemy: converting negative interest rates into a bonanza of yield via the magic of derivatives.
In a $15 trillion world of sub-zero debt, investment banks are creating exotic solutions for investors looking to bet on everything from ever-lower rates to the bullish credit cycle.