Wednesday, Jan 11

The Most Important Thing Today (1/11/23)

Proactive communication about what’s going on in the market and the economy is key to building stronger client relationships. Each week, the Helios team breaks down the most important information your clients need into easy-to-understand talking points for you to share.

Let's talk about yields!

No More Negative Yields

The total value of negative-yielding bonds in the Bloomberg Global Aggregate Index reached zero on January 4, 2023, after peaking at over 18 trillion in 2020.

Global monetary policy tightening led to bond selloffs that dropped the number of bonds with negative yields.

Japan was the last bond market to feature sub-zero yields, but the Bank of Japan's recent policy shift has led to speculation that the era of negative interest rates may be ending.

Negative yield on bonds once seemed like an academic impossibility, but near-zero central bank policy rates and the need for investors such as endowments and pensions to park trillions of dollars created the anomaly.

Source: Helios Quantitative Research, Bloomberg

Team Helios

Team Helios

Helios partners with Financial Advisors to help them grow their business, save time, and add scale to their services through enhanced asset management capabilities. Helios was founded in 2016 in Granite Bay, California.