Pimco’s Crescenzi: Yields as Low as They Can Go Absent a Rate Cut

The video discusses the current state of Treasury notes, highlighting the negative carry situation where investors lose money if they borrow at higher rates than the yield. It explores market fears due to the coronavirus and the potential for yields to snap back. The impact on Europe is significant, with slow economic growth and fears of recession due to strong ties with China. The video suggests that while demand may be delayed, it is not permanently destroyed, and investors should look beyond the immediate impact.

What does the term 'negative carry' refer to in the context of investments?

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In what ways could the economic activity in Europe be affected by the situation in China?

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