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Opinion
Marcus Ashworth

Is It a Bond? Please Can I Have It? Right Now?

Yields everywhere are turning negative, and fund managers have little choice but to buy – against their better judgment. 

The bond market has been turned upside down. 

The bond market has been turned upside down. 

Photographer: WOLFGANG KUMM/DPA/Getty Images

It’s slim pickings in the bond market at the moment. What else can fund managers do but fall into line with their index, close their eyes and buy?

A pervasive fear of missing out on even the slightest hint of yield has created an unseemly buying frenzy that has swept across Europe, touching government bonds and making its way down the credit spectrum to high-yielding corporate debt.