In a report “Making Sense of Negative Yields,” a Morgan Stanley report explains why institutional investors in Europe are purchasing bonds that pay the corporation rather than the investor AKA Negative Yielding Bonds. “With valuations as distorted as they are, investors are left with very small margins for error,” the September 12 report warned. The report “plunge(d) further down the rabbit hole and explore(d) this new upside-down world of European corporate credit.” Negative Yielding Bonds – Institutional investors driven by mandate, price momentum and benchmarks to invest With an estimated €467 billion bonds across Europe now in negative yields – a…
Morgan Stanley Explains Why Institutions Invest In Negative Yielding Bonds
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.