Sub Zero Yields In Europe's Junk Bond Markets ?

[Stockolio]

https://www.bloomberg.com/news/arti...tart-taking-hold-in-europe-s-junk-bond-market

Star Wars had less science fiction then what is going on in Europe's Fixed Income... I think we are past the point of fantasy, and someone has to call a timeout. The train wreck is getting out of control, some banks in EU have to pay to hold High Yields ? Why even call them HY ?

Where does it end ? Are they so afraid of a crisis that they will go to any extent to socialize loses and privatize gains ? If the master plan is for NIRP at -3 -4 % and cashless society's, then CB's are doing their thing to get us there... If they legit think this is the path to prosperity going forward, then this is trippy. Fiat system is at risk, helicopter money is next for all major CB's, but there's nothing after UBI, it's the last stage for monetary policy...

 

[GregorySG9]

EU governments can earn money by taking more debt. It helps financing their social policies.
So we can wonder why investors still put money in European treasuries.
Hedged (in USD) European treasuries have actually higher yield than American ones but what about European investors... lack of better opportunities?

 

[Stockolio]

EU governments can earn money by taking more debt. It helps financing their social policies.
So we can wonder why investors still put money in European treasuries.
Hedged (in USD) European treasuries have actually higher yield than American ones but what about European investors... lack of better opportunities?

High Yields are Corporate Bonds... Banks and Institutions piling in Negative Yielding Sovereign Bonds is for safe collateral to pledge in repo, although weird it's for hedging purposes when lending gets tight you can only pledge liquid stuff, government bonds is king... But this fuckery of Corporate Junk Bonds yielding even negative 10 bps is insane. How are banks in EU making any money ? Deutsche bank CEO said DB will go back to traditional banking in EU, by paying companies to hold their debt ? It's officially a circus in Europe, the internet blew up with this. How are European Pension Funds surviving ? Buying US CLO's like Japan ?