Friday, March 27, 2015

27/3/15: Debt, Glorious Debt, Deluge of Debt... and Negative Yields


In the article on global debt woes forthcoming in one of the financial letters I contribute to in April, I will be looking more in depth at the problems brewing in the global asset markets. But for now, couple of interesting (additional) points.

According to Pictet, the share of global debt that is trading at negative yields has now risen to 8% of the total debt outstanding. For the Euro markets, 19% of all debt traded is now negative yielding, for debt denominated in Swedish SEK - 33% and for for Swiss CHF denominated debt - 44%.

If this is not enough to raise your hair, here is what investors think of the bonds markets:
Source: @lebullmarche
Per above, two core concerns are now taking over the worry-ranks for institutional investors: valuations bubble in bonds markets (up from 17% to 30% between January and March 2015) and Supply and quality of issuance of new debt (up from 6% in January to 26% in March).
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