by Mark DeCambre
The “biggest bond bubble” ever. That is how one of Wall Street’s most prominent hedge-fund managers referred to the fervor to scoop up fixed-income investments, like government bonds.
Who can blame Singer. MarketWatch has mentioned this before, but central banks around the globe have rolled out unprecedented measures, including purchasing corporate and government bonds, in an effort to shock their wobbly economies to life and end a period of low inflation.
As a result, yields on trillions worth of bonds around the globe have been pushed into negative territory as central banks purchase debt and other securities in an attempt to drive down borrowing costs, push investors into riskier assets, and spur economic growth.