Steen Jakobsen
The Bank of Japan has abandoned quantitative easing and the European Central Bank may taper its bond-buying programme, so what is the role of central banks in 2017, asks Saxo Bank’s chief economist Steen Jakobsen.
Squawk / 01 August 2016 at 19:35 GMT
CEO and CIO / U.S. Global Investors
United States
Looking for Yield in All the Wrong Places

Fixed-income isn’t what it used to be. As the Wall Street Journal reports, the total amount of global government bonds that bear negative yields—meaning it costs you to have the government hold your money—has now climbed to a massive $13 trillion.

This figure is likely to grow as yields continue to plumb the depths of negative territory, giving global investors little choice but to seek income elsewhere.

For some, it’s corporate debt. But even these securities have fallen significantly since the start of the year, many below zero.


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