Negative-Yielding Debt Expands in Global Market

The video discusses the prevalence of negative yielding debt, which has surged beyond $10 trillion, affecting 1/5 of the global investment grade bond market. This phenomenon is pushing investors towards riskier assets like corporate bonds and stocks. The video also highlights the declining short interest in major investment grade bond ETFs, indicating a shift in investor behavior due to stable interest rates and credit costs in the US. Overall, the video explores the implications of negative yields on global markets and investor strategies.

Why do investors believe that interest rates will not rise materially in the near future?

What effects might the surging negative yielding universe have on corporate bonds and stocks?