FEP - Corporate Yields Are Heading South In The Euro Land
Some of the euro area's junk-rated corporate debt is now trading at negative yields, and over 15% of near-junk debt is also charging the lenders to provide cash to financially weaker companies:
Source: WSJ
While the overall stock of negative-yielding debt (sovereign and corporate) is now nearing $13.5 trillion worldwide:
Source: Bloomberg
All in 51 percent of all European Government bonds are trading at negative yields, and just over 30 percent of all investment-grade corporate bond issued in the euro.
The percentage of negative-yielding debt amongst junk-rated corporates is small. Bank of America ML estimated