Negative yielding debt now exceeds $10trn globally and some analysts are questioning whether central banks are capable of finding creative solutions to normalise interest rates without disastrous side effects.
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“Central banks have taken us into new territory and the outcome is uncertain. But putting that $10trn figure into a power point presentation and offering some grave speculation impresses people much more than the default Warren Buffet quote about swimming naked.” Robert Ruderschmidt, portfolio manager, Overflowing Alpha Asset Management |
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“There is some short-term concern, but over the long-term were are optimistic. Historically, banks have always found creative ways to get out of the messes they create.” Louie Zheng, head of discretionary mandates, Global Behemoth Private Bank |
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“We have a one sentence comment but it must be accompanied by a 10,000 word disclaimer from compliance or we cannot release it.” Buffy Leung, corporate communications, Absolute Zero Risk Investment Management (AZRIM)
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“We see opportunity. We’ve developed a product that shorts negative yielding sovereigns when the banking sector falls below its historical average and the country’s currency appreciates in an asymmetrical trend pattern. But some market education is needed.” Rudolph Maté, global head of product development, Humble Asset Management |
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“The team is working to come up with a positive spin on this.” Shelley Sim, head of marketing in APAC, SmoothTalk Fund Management Group |
