BRUSSELS/LONDON/TOKYO -- Investors and fund managers worldwide are coming to grips with a growing phenomenon: a huge and rapidly expanding pile of negative-yielding debt.
The global stock of bonds with negative yields has doubled since the beginning of the year to around $17 trillion. Investors are snapping up such debt even though they are guaranteed to suffer a loss if they hold it to maturity, betting on further rises in bond prices. Speculation is swirling that central banks will further ease their already super-loose monetary policies in response to signs of economic downturns.
