There are trillions of dollars of bonds in the world with negative yields – a fact with which future historians will find baffling.
Until now those negative yields have been limited to the safest types of bonds issued by governments and major corporations. But this week a new category of negative-yielding paper joined the party: mortgage-backed bonds.
Bankers Stunned as Negative Rates Sweep Across Danish Mortgages
(Investing.com) – At the biggest mortgage bank in the world’s largest covered-bond market, a banker took a few steps away from his desk this week to make sure his eyes weren’t deceiving him.