The European Central Bank’s ‘bazooka’ QE is causing some very strange movements in the European credit markets. The latest development is the falling yield on European BB rated bonds which could mean JUNK BONDS will soon have Negative yields!!
According to research from Bank of America, if the average yield on BB bonds continues on its current trajectory within a few weeks, or possibly a few days negative yielding BBs will be a reality in Europe.
Negative yields on junk debt? Time to do an LBO
It doesn’t take a top Wall Street analyst to realise that negative...
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