Low Rates More of a Hindrance than Help, Says Jeffrey
Think of the nations whose bonds yield less than zero, and Japan, Switzerland, Germany and France jump to mind. Yet there is a group of much poorer, ex-communist, countries that also get paid by investors eager to park their cash with them. Government debt from developing Europe trading at negative rates has swelled more than five-fold over the past 12 months. The spreading of sub-zero yields is testament to how the European Central Bank’s bond-buying policy has reverberated throughout the continent, while illustrating the economic and political progress of the nations that shed communism 27 years ago. Cazenove Capital Management Chief Economist Richard Jeffrey discusses with Bloomberg's Francine Lacqua on "The Pulse."