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European Corporate Debt Market Plunges Into Subzero Return Freezer, Too

Summary:
What stands out in the chart above, is that 2/3rds of AA-rated EUR bonds, over 1/3 of single As, over 1/5 of BBBs and nearly a tenth of BBs yield less than zero at the moment. Here is the shocking punchline: the higher-rated front end is essentially all under water and 33% of the €2.2tn market, or some €700bn of EUR IG corporate bonds, have a negative yield. https://www.zerohedge.com/news/2019-07-13/third-all-european-ig-bonds-has-negative-yields

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What stands out in the chart above, is that 2/3rds of AA-rated EUR bonds, over 1/3 of single As, over 1/5 of BBBs and nearly a tenth of BBs yield less than zero at the moment. Here is the shocking punchline: the higher-rated front end is essentially all under water and 33% of the €2.2tn market, or some €700bn of EUR IG corporate bonds, have a negative yield.

https://www.zerohedge.com/news/2019-07-13/third-all-european-ig-bonds-has-negative-yields

David Stockman
David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

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