Finance & Fury Podcast

Welcome to Finance and Fury, The Say What Wednesday Edition This week Question from Mark – two-part episode (over this week and next) Hi Louis I have 2 questions, can you explain how negative yielding bonds work, they are saying a third of the global bond market is in negative yielding debt and it is going parabolic. How do people make money from negative yielding debt? It doesn't make sense. Also, can you explain the repo markets that are going on at the moment? Apparently the banks are loaning money from the Feds at 10% so they have enough liquidity to survive the night # Bank run?   How can a bond have a negative yield? Negative-yielding bonds are bonds that cause bondholders to lose money when they mature. This happens when holders of such bonds will end up with less money than what they used to purchase them Negative Yield works through the mechanics of bonds – when the prices go up to where the yield is close to zero – and they are based in a nominal real value $100 – in 10 years’ time inflation eats a