Bank sells 1.25 billion euros worth of debt guaranteed to lose money in long run
Canadian Imperial Bank of Commerce has become the first Canadian bank to sell bonds with a negative yield, and it had no problem selling the debt even though buyers are guaranteed to lose money if the debt is held to maturity.
According to Bloomberg data, there is almost $12 trillion US worth of negative-yielding debt in the world now, much of which has come from governments and central banks that have cut their interest rates to record lows in order to stimulate the economy.
“Low yields may be great for governments, but they are lousy for savers and investors,” Hilltop Securities managing director Mark Grant said in a note.
related:
‘Soon’ And ‘Really, Really Crazy’: Starting Up The Helicopters
