Bank of America – Over 40% of euro funding grade bonds to start 2021 with unfavourable yields – Bank of America

Zero-yielding retailer of value belongings equivalent to gold might proceed attracting patrons within the near-term, as a big variety of euro investment-grade bonds are on observe to start the brand new 12 months with unfavourable yields. 

Bank of America places that quantity at 42%, as noted by Jeroen Blokland, Portfolio Supervisor for the Robeco Multi-Asset funds. 

The worldwide stockpile of negative-yielding bonds not too long ago reached contemporary document highs above $17.5 trillion. 

Whereas coronavirus vaccines may grow to be out there within the subsequent three to 6 months, main central banks are unlikely to halt financial easing any time quickly. As such, the stockpile of negative-yielding bonds might proceed to rise.