Wednesday April 1, 2020

Bonds used to be risk-free returns: now they’re return-free risk

Mario Draghi is playing his cards close to his chest over quantitative easing, leaving investors scratching their heads over where to put their money

Barry J Whyte

Chief Feature Writer

@whytebarry
14th January, 2015
2

Last week, the yield on two-year German bonds fell to minus 0.11 per cent. Such a yield means that, instead of investors putting their money safely in bonds and earning a modest return, they were willing to lose 0.11 per cent of their capital – essentially, paying a fee to the German government – simply to ensure they didn’t lose any more.

At the same time, the eurozone slipped into deflation, with prices on ordinary...

Subscribe from just €1 for the first month!

Exclusive offers:

All Digital Access + eReader

Trial

€1

Unlimited Access for 1 Month

Then €19.99 a month after the offer period.

Get basic
*New subscribers only
You can cancel any time.

Annual

€200

€149 For the 1st Year

Unlimited Access for 1 Year

You can cancel any time.

Quarterly

€55

€42

90 Day Pass

You can cancel any time.

Team Pass

Get a Business Account for you and your team

Related Stories

What’s coming up today and what you might have missed

Hannah O’Brien | 3 months ago

What’s coming up today and what you might have missed.

Hannah O’Brien | 3 months ago