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Title :  Negative interest rates, Falling yields: time to Examine Bitcoin
Lasting :   14,9
User :  Dukus
Date of publication :   2019-09-26
Views :   400
Liked :   645
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Frames Negative interest rates, Falling yields: time to Examine Bitcoin





Description Negative interest rates, Falling yields: time to Examine Bitcoin

With a strong uncertainty on the labour market, low inflation and negative interest rates in many countries, it’s more and more difficult for investors to ignore, Bitcoin, which is one of the very few investments these days, to give you an alternative to other losses.

Also read: a brexit, and Bitcoin and Gold…Oh 

The Yields Of Bonds With A Negative World

Under the recent turmoil at the following markets Britain to exit the eu, the lowering of the forecasts and credit ratings, the investors have made on the way, sure, the debt of the government caused a return of fixed-income investments in the United States, Europe and Japan are in free fall. More and more investors buy bonds, rising prices and falling yields.

Negative yields are now quite common, the obligations of the government. According to Citigroup, Swiss government bonds with a long maturity have negative yields, as well as almost 80% of the Japanese and German government bonds have now. The Negative yield of government bonds from Italy amounted to around 1.6 trillion us dollars in value, while the country is struggling in a crisis, the bank, with bad receivables and non-performing loans (loans that are not productive) in the value of €360 billion us dollars (400 billion).

According to Bank of America Merrill Lynch, it is currently $13 billion dollars of a total negative return of debts. This is a significant increase from only $11 billion, the British eu exit vote, and has almost nothing in mid-2014.

In the us, yields on 10-year Treasury note fell to a low record of 1.366% Friday, even if the ratio of the work shows a strong growth. By the way, Lithuania’s in 10 years, the debts of the government’s performance has percentage more than halved this year to about 0.5. Taiwan’s the 10-year bonds are not much better, with yields of about 0.7%. New Zealand’s 10 years-bond are slightly better range of 2.3% return for the investors.

The investors are Willing to accept higher risks

To compensate for the reduction of the national debt on the returns that the investors of risky goods, on the search, in the emerging countries and bonds. Head of emerging countries Invesco, Rashique Rahman, said that the company’s institutional clients in Western Europe and Asia are now interested in the purchase of investments in emerging countries, the debt in order to help increase the yields of their portfolios. In contrast to earlier investors are not matter who the debts of the Issuer are," he said, and added that:

&the artist;they just want to achieve a higher return on investment.”

HSBC Global Asset Management, sees the same trend. Ricky Liu, a high-yield bonds, portfolio manager of the company, said that his company’s of customers from Asia, to invest for the first time, the highest nominal bonds junk. According to Bank of America Merrill Lynch, in the development of the debt market to Fund its highest audience have a record in the week to 6. July.

Worse is to Come

The situation may be worse than the credit companies and credit rating, Fitch Ratings warned that it is likely to be a record for the lowering of the credit rating this year. Fitch has already revised from 15 countries in the first half of the year. It is an important initiative, at the time of the previous record year of 2011 when the crisis in the Euro-zone is still 20 haircuts for the entire year. Also, all of the changes, to cause, as changes in monetary policy, the interest rate increases the more damage, the yields of the bonds.

Time to Examine Bitcoin

During this time, Bitcoin continues to be more interest among investors as a safe haven for investments. During the turbulence of the markets after the British eu exit vote, bitcoin, investors have been immune and has experienced an increase of 9% of the value of the bitcoin holdings. Ashvin Bachireddy, co-founder and partner in the order given, Geodetic decided in the capital, a Silicon Valley venture capital company, the bitcoin start-up 21 Inc., he said after the British eu exit vote &the artist;Bitcoin is actually a digital gold.”

Bitcoin exchange Kraken to vote because of the volume of bitcoin trading twice in the 24 hours after the British exit the eu, and five times bitcoin to euro-negotiations prior to the vote, since the 10 of June. Kraken’s ceo Jesse Powell said on CNBC that he &the artist;not’t tell the person to save your life in bitcoin, because you could just as easily be scratched from the card.” But, he added:

Think in terms of the diversification of your portfolio. If you have investments in gold or index, may be thinking about bitcoin or cryptocurrency as an asset class that you would like to have a little bit of money.

Steve Waterhouse, a partner in San Francisco, the bitcoin investment firm, Pantera Capital, said that investing in bitcoin is useful in certain situations. He said:

If nothing else seems to be safer, you could see how people looking for something completely different, like an oasis of calm[…] follow It doesn’t to be, the UPS and downs of the stock exchanges.

While there are benefits, if the bitcoin in an investment portfolio, it is without risk. This is the reason, why the bitcoin is big, as an asset to diversify a portfolio, so if yields decrease, there are other investments that do not move in the same direction.

Do you believe that investors should diversify their portfolios of bitcoin? Let us know in the comment section below.



Comments Negative interest rates, Falling yields: time to Examine Bitcoin



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Comment from : Td1zzle



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