Is There New Investor Concern About Bonds?
Bond investors are taking bigger risks than ever before. Yields on $7.8 trillion of government bonds have been driven below zero by worries over global growth, meaning money managers looking for income are pouring into debt with maturities of as long as 100 years. Aggressive stimulus measures by the Bank of Japan and the European Central Bank, pushed average yields on $48 trillion of debt securities in the BofA Merrill Lynch Global Broad Market Index to a record-low 1.29 percent this month, compared with 1.38 percent currently. BNP Paribas Senior Investment Strategist Daniel Morris discusses with Bloomberg's Hans Nichols in Berlin and "On the Move" host Guy Johnson in London.