Investors own a staggering amount of bonds that offer almost nothing in return
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There's a staggering amount of government bonds around the world with yields below zero.
Fitch credit researchers crunched the data to find that $9.9 trillion in global sovereign debt had negative yields as of April 25.
That's composed of $6.8 trillion of long-term debt, and $3.1 trillion in short-term debt.
"Unconventional monetary policies, regulatory risk mitigation by banks and a flight to safety in global financial markets have all contributed to a rapid rise in the amount of sovereign debt trading with a negative yield," wrote Robert Grossman, managing director of macro credit research, in a report Wednesday.
The rush into sovereign debt — by governments to encourage lending and by investors to find safer assets — has helped to raise bond prices and pushed down yields.
Japan accounts for the majority of global negative-yielding debt — 66%. This chart shows its debt alongside other countries with negative yields.
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