European credit markets no longer makes any sense The European Central Bank’s extended quantitative easing programme attracted criticism from the start as many analysts believed such a QE bazooka would distort bond markets. It has become apparent over the past few weeks that this is exactly what is happening. ECB QE means that 47% of the European area government bond market trades at a negative yield and nearly 25% of the European corporate investment grade credit market trades at a negative yield thanks to the ECB’s Corporate Sector Purchase Programme. These negative yields are playing havoc with fixed income investors. [drizzle]The…
Europe's credit market no longer make any sense
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk