I find this a weird and interesting situation - Germany for instance yields -0.11%
Why even buy bonds at all? Wouldn’t you be better off staying in cash then?
Takeaway: Capital is in such oversupply that you have to pay the government to hold on to it in some parts of the developed world
Global negative-yielding debt hit $10.6T the other day, the highest such total since Sept 2016 and almost 2X the volume in place last Oct.
Who buys? Owners of target-date funds w/ exposure to global bond indexes. Millions of Americans.
Capital is in oversupply, the search for yield is desperate.
What is the most pure yield in the world? Startups when they are real and actually work.
Glad I get to work on that part of the global economy. Done right, it is the most growth mindset business in the world.
You can follow @garrytan.
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