The Landscape of Negative-Yielding Debt

The transcript discusses President Trump's advocacy for negative interest rates in the US, comparing them to rates in Europe and Japan. It highlights the record high of negative yielding debt and its impact on global markets. The spread between US Treasurys and German Bunds is analyzed, showing a contraction that attracts foreign investors. The influence of global negative rates on US corporate debt is also examined, with Trump urging the Federal Reserve to lower rates further despite a stable economy and low inflation.

What is one reason President Trump advocates for negative interest rates in the US?

• To match the policies of other countries

• To decrease the national debt

• To increase inflation

• To boost consumer spending

What is a notable characteristic of negative yielding debt?

• It is a new concept introduced in 2020

• It is only found in developing countries

• It requires lenders to pay borrowers

• It offers high returns to investors

How has the issuance of debt changed in Europe and Japan due to negative yields?

• It has decreased significantly

• It has been unaffected

• It has remained stable

• It has increased

What has been the effect of the yield gap between US Treasurys and German bonds?

• It has widened significantly

• It has disappeared

• It has remained constant

• It has contracted

How have negative rates in Europe and Japan potentially influenced US corporate debt rates?

• They have caused US corporate debt rates to fluctuate wildly

• They have increased US corporate debt rates

• They have helped push down US corporate debt rates

• They have had no impact