The Asset Allocator: Why Buy Negative-Yielding Bonds?

It’s understandable why large pension funds or insurance companies would buy negative-yielding bonds, and it’s pretty clear why central banks do, but why would ordinary investors do so? This podcast (6:34) suggests that while negative-yielding bonds...

An episode of the SA For FAs podcast, hosted by Seeking Alpha, titled "The Asset Allocator: Why Buy Negative-Yielding Bonds?" was published on November 12, 2019 and runs 6 minutes.

November 12, 2019 ·6m · SA For FAs

Summary

It’s understandable why large pension funds or insurance companies would buy negative-yielding bonds, and it’s pretty clear why central banks do, but why would ordinary investors do so? This podcast (6:34) suggests that while negative-yielding bonds can pay off under certain circumstances, their zero or negative yields strengthen the case for zero- or negative yielding cash or gold which serve as effective hedges but with greater flexibility.Learn more about your ad choices. Visit megaphone.fm/adchoices

Episode Description