Bond Funds on Vacation?
Are your clients invested in bond funds on vacation? Many bond funds own assets in countries producing yields below zero. That could mean client money isn’t working nearly as hard as it could be.
A few quarters back, we shared a glimpse at the top six countries with debt below zero*. Since then, some countries have shuffled around the list, but the numbers are still staggering.
Here are the current top ten countries with yields below zero*:
|1. Japan||$7.6 T|
|2. France||$1.8 T|
|3. Germany||$1.4 T|
|4. Switzerland||$1.1 T|
|5. Netherlands||$345 B|
|6. Belgium||$275 B|
|7. Austria||$205 B|
|8. Italy||$76 B|
|9. Spain||$67 B|
|10. Finland||$11 B|
With this in mind, how does IRON’s approach differ? We, for one, focus on countries (and sectors) that provide value. We buy assets that produce a positive yield, and that’s it!
Want to know more about our fixed income mission? Feel free to reach out at any time!
The opinions and information referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice. This material is not intended to be relied upon as a forecast, research, or investment advice regarding a particular investment or the markets in general. The material contained in this document is for general information purposes and is not intended as an offer or a solicitation for the purchase and/or sale of any security or financial instrument, nor is it advice or a recommendation to enter into any transaction.