How negative rates are squeezing instos’ options

Some of the world’s top asset owners have been piling into fixed income in an effort to avoid the volatility of global equity markets. But the benefits of that pivot are being withered away by the growing impact of negative interest rates.  Debt yields on sovereign paper issued by European countries including Sweden, Germany, France, Japan, Austria, Denmark, Finland, Netherlands and Switzerland have recently turned negative. About one-fourth of the world’s bonds carry negative yie…