Daily Note – Navigating Negative Rates


  • Search for Yield may lead down a treacherous path
  • Central Banks install a parking meter!
  • United States: Data doesn’t justify the hysteria

Good Morning,

I was in London yesterday and there was a lot of talk about negative rates. There appears to have been a minimal amount of planning by central banks like the ECB for this policy – certainly less than for QE.

The FT has a very interesting article running the rule over central banks who have or could go negative and the implications. Those are pretty varied and wide-ranging. At a country level it obviously causes flows to go chasing yield. With the door closing on earning money from parking it at a central bank, the money has to find a home elsewhere.

Download a FULL PDF version of the Daily Note:

GlobalMacro360 Daily Note 19th February 2016


The statements, opinions and analyses presented in the articles, newsletters, and other materials appearing on this website are provided as general information and for educGlobalMacro360 Daily Note 18th February 2016ational purposes. Opinions, estimates and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. David McWilliams shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided.

Categories: Daily Note