If Negative Yields Are a Drug, Europe Is Just Saying "More"

  • The stockpile of negative obligations across all markets hit a record $16.7 trillion last week, and could swell further as the ECB preps fresh stimulus
  • Leverage in Europe is low, and it could stay that way - even though many companies are able to issue debt with negative or record-low yields
  • If companies lock in these rates in the primary market, they could in effect be getting paid to borrow. However, growing signs that Europe is headed into a recession mean treasurers have plenty of reasons to resist