According To Bloomberg, The World Now Holds $15 Trillion In Negative Yielding Debt

Can you image the reaction you’d get if you told somebody 30 years ago that people would be paying governments to accepts their loans, and not the other way around? Think about it, when you loan somebody money, not only is there an opportunity cost, but also a risk of default. The default risk is essentially non existent when you are lending money to most governments, but there is still a risk of inflation, which could reduce the value of your loan, so even though there is no default risk, there are still risks nonetheless.

The idea of a negative yielding bond goes beyond being counter intuitive; this is teetering on insanity! Click the image for the full report!

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