negative yield

Jeremy Grantham, Black Holes & Brexit

Negative Interest Rates as “Black Hole Experiment” If somebody else thinks what you think, you can’t be crazy, right? Explanation #2:  you’re both suffering from exactly the same malady. Either way, it’s reassuring to read famed investor Jeremy Grantham’s latest thoughts on today’s bizarro world of negative interest rates and inflated asset prices, courtesy of...
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Purchasing Power Pop: Why Housing Might Go Up 15%. Fast.

30-Year Mortgages @ 3%?? For the moment, mortgage rates have bottomed, and may be even be climbing a bit. But, broader market forces (as they say) definitely seem to be tugging rates lower this Summer. Brexit Financial Aftermath There is now a stunning $10 billion-plus in negative-yielding government bonds globally (think, Germany, Switzerland, and — surprisingly,...
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Return on Capital? Return of Capital? Try, Neither

Short-Term German Bonds Pay Negative Interest “I am not so much concerned with the return on capital as I am with the return of capital.” –Will Rogers Want an indication of just how bizarro today’s environment of zero percent interest rates (“ZIRP”) is? Investors just accepted a negative interest rate on short-term German bonds:  In an...
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