There are four main reasons that an investor might choose to buy a negative yielding bond. Kathy Jones, a strategist at Charles Schwab, explains it. Key quotes “Safety. U.S. Treasury securities are considered risk-free, and when markets are in turmoil, investors may prefer to lose a small amount in exchange for knowing that the rest of their principal is safe.” “Deflation fears. If an investor believes that prices will fall, then the purchasing power of the money saved could rise.” “Speculation. Some investors may believe that yields will continue to fall and therefore believe that the price of their negative-yielding bonds will rise.” “Regulatory requirements. Institutional investors like banks may be forced into holding Treasury securities by regulation.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/JPY Price Analysis: Further consolidation remains on the cards FX Street 2 years There are four main reasons that an investor might choose to buy a negative yielding bond. Kathy Jones, a strategist at Charles Schwab, explains it. Key quotes “Safety. U.S. Treasury securities are considered risk-free, and when markets are in turmoil, investors may prefer to lose a small amount in exchange for knowing that the rest of their principal is safe.” “Deflation fears. If an investor believes that prices will fall, then the purchasing power of the money saved could rise.” “Speculation. Some investors may believe that yields will continue to fall and therefore believe that the price of their negative-yielding… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
