This is nuts. When’s the crash?

For bonds, at least, that question seems to become ever more rhetorical as things get further from what used to be considered normal.

But we’ll push on.

ICYMI, from Deutsche’s Jim Reid and with our emphasis:

On this theme, both Bloomberg and Reuters reported yesterday that Deutsche Bahn has become the first non-financial company to issue debt with a negative yield. The railway operator sold €350m of five-year bonds with a zero coupon which were priced to yield -0.006% according to Bloomberg.

Given Deutsche Bahn is 100% state-owned we’d hesitate to go as far as saying that this marks the first such time a true corporate has issued negative yielding bonds in Euros, but it’s a phenomenal statistic nonetheless and shows the power of ECB bond buying at government and corporate level.

The “theme” mentioned there is about corporate bond buying, specifically “the chatter of possible corporate bond buying by the BoE.”

As mentioned a few times already, it’ll be fun to see future generations wondering how it all got so nuts.

Or smirking and wondering why we ever thought this stuff was weird. [Ed -- kudos for avoiding a Pokémon Go reference in here. Oh... Sorry.]

Related links:
Corporate bond yields and the cold pull of negativity – FT Alphaville
Corp bonds join negative yield club – FT
In ten years times, what will we think about negative yields? – Weldon Medium
Negative govvies, why would ya? FT Alphaville
Corporate bond yields and the cold pull of negativity – FT Alphaville