The Market Value Of Negative Yielding Corporate Debt Globally Is Up +1,322% In 2016

07/25/16 12:52PM EDT

The Market Value Of Negative Yielding Corporate Debt Globally Is Up +1,322% In 2016 - Yield cartoon 06.14.2016

That's no misprint. The value of negative yielding investment grade corporate debt is up +1,322% this year, hitting $387 billion. That's according to data in the Bloomberg Global Investment Grade Corporate Bond index, which tracks 9,976 investment grade bonds.

The index now includes 621 negative yielding bonds, versus just 59 at the start of the year, issued by companies such as General Electric, Siemens, Total, Unilever, Daimler, and Roche. 

Meanwhile, on the sovereign bond front, there is $9.1 trillion in negative yielding bonds globally, according to the Bloomberg Global Developed Sovereign Bond index. That's up from $2.8 trillion at the start of the year. (Note: The yield on the Bloomberg Global Developed Sovereign Bond index is currently 0.49%, versus 1.14% in November.)

The Market Value Of Negative Yielding Corporate Debt Globally Is Up +1,322% In 2016 - bgdsb

Don't expect this trend to reverse any time soon. With central banks globally desperately trying to reverse the general economic malaise expect yet more bonds to test negative territory.

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