FYI: Everyone is reading this new Joachim Fels piece at PIMCO today about the fact that there are now $15 trillion worth of negative-yielding sovereign bonds around the world, something that just a few years ago would have seemed wholly inconceivable based on what we thought we understood about human nature, risk, the mechanics of the financial system and behavioral economics.
In countries from Asia to Europe, investors are choosing to park their capital in investment instruments that actually cost them money rather than invest in riskier assets or use cash for consumption today…
Regards,
Ted
https://thereformedbroker.com/2019/08/07/negative-rates-could-happen-in-america-too/
