BIS’s Borio warns of ‘troubling’ negative yields
BIS quarterly review highlights new peaks in negative-yielding debt and examines CLO risks
The Bank for International Settlements’ Claudio Borio has described the growing prevalence of negative-yielding debt as “vaguely troubling”, as the institution looks back on a turbulent quarter.
Borio, who heads the BIS’s monetary and economic department, noted negative-yielding debt hit new highs during the quarter – a peak of $17 trillion, according to some estimates. Some households could even borrow at negative rates.
“A growing number of investors are paying for the privilege of parting
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