Negative Yielding Debt Near Record

The video discusses the rise of negative yielding debt, driven by government deficits and central bank policies. It highlights Europe's significant role, particularly Brussels' €17 billion debt issuance, and the surge in euro corporate credit bonds. Investors are moving up the risk curve, seeking yields in various bond markets, including sub-investment grade and private credit. The situation differs from the 2008 crisis, with many companies potentially facing restructuring.

What is one of the main reasons for the increase in negative yielding debt?

• Central banks adding more easing into the system

• Increase in private investments

• Decrease in government deficits

• Reduction in corporate bonds

Which region is primarily responsible for the recent surge in negative yielding debt?

• Asia

• North America

• Africa

• Europe

What was the value of the debt issued by Brussels that shocked the bond market?

• €10 billion

• €25 billion

• €30 billion

• €17 billion

What is a significant difference in investor behavior compared to the 2008 crisis?

• Investors are only buying government bonds

• Investors are moving up the risk curve in the bond market

• Investors are focusing on high-risk stocks

• Investors are avoiding bonds

According to Black Rock, what is a potential risk associated with the current debt market?

• All companies issuing debt will thrive

• Many companies issuing debt may not survive

• Interest rates will remain constant

• There will be no need for restructuring