Do Central Banks’ Negative Rates Work in Europe?

Do Central Banks’ Negative Rates Work in Europe? Not really. Actually, negative rates distort economies and leave little room to maneuver in the next recession. Secondly, extremely low interest rates are also bad for European banks, like Deutsche Bank, which in turn is bad for economic growth. It’s a feedback loop which could lead to…

Negative Yielding European Corporate Bonds

Negative Yielding European Corporate Bonds Now, €1.1 trillion of European corporate bonds yield are below zero: exactly half of the European high-grade credit market. Image: BofA Merrill Lynch

Total Negative Yielding Corporate Bonds Outstanding

Total Negative Yielding Corporate Bonds Outstanding Negative-yielding corporate debt passed $1 trillion in market value. Investors face significant risk should rates start to rise. Image: Bianco Research

$11 Trillion Bonds Globally Trade At Negative Interest Rates

$11 Trillion Bonds Globally Trade At Negative Interest Rates The total amount of negative interest rates climbed to USD 11 trillion. Investors are paying governments for the privilege of holding their bonds and are losing so much money in real terms. Image: Deutsche Bank Global Research

ECB Balance Sheet vs. ECB Deposit Rate

ECB Balance Sheet vs. ECB Deposit Rate It could be difficult to push rates further into negative territory without affecting the profitability and financing capacity of Eurozone banks. Image: Jeroen Blokland

Global Negative Yielding Bonds

Global Negative Yielding Bonds This chart shows all bonds in the world at negative interest rates. Image: Goldman Sachs Global Investment Research

Negative Yielding Bonds In the World

Negative Yielding Bonds In the World Now, 25% of all bonds in the world trade at negative interest rates. Keep in mind that raising interest rates in the future could be painful for bond investors. Image: Deutsche Bank Global Research

The Amount of Outstanding Negative-Yielding Debt since 2009

The Amount of Outstanding Negative-Yielding Debt since 2009 Investors are paying governments for the privilege of holding their bonds and are losing so much money in real terms. Raising interest rates in the future could be painful for bond investors. Image: Jeroen Blokland, Bloomberg