Negative Yielding Debt

Drawn into the stream
Of undefined illusion
Those diamond dreams
They can't disguise the truth
--Level 42

ZeroHedge reports that negative yielding debt now exceeds $13T worldwide. Who's buying? Institutions and asset allocators that must buy bonds regardless of yield, perhaps. Also folks who are risk averse but see no other 'safe' options.

More likely buyers, however, are momentum traders. They don't care about the coupon. They care about the direction of bond prices. As long as prices are going up, bond traders are long.

And leveraged...