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Factor in inflation, and investors are risking negativereal returns on their money.
2
His forward guidance of years of negativereal interest rates is an invitation to sell.
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It seems the world is headed toward negativereal interest rates on a global scale.
4
Deepening negativereal yields are also fueling some nervousness.
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However, when financial repression produces negativereal interest rates, this also reduces or liquidates existing debts.
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But while encouraging younger borrowers, negativereal rates could also stoke asset bubbles, particularly in residential property.
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The 2065 linker currently offers a negativereal yield of -1.475 percent.
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This has proven tricky in an environment of zero or negativereal returns on cash, PIMCO adds.
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That's a negativereal interest rate of almost 2 percent, the second worst in Asia after Hong Kong.
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And India is maintaining negativereal interest rates, despite nudging up policy rates by another 25 basis points this week.
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Banks are still obliged to lend to small companies at negativereal interest rates and caps remain on fees and commissions.
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Equity returns and dividend yields are especially key for investors looking for alternatives to negativereal returns on sovereign government bonds.
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These can't match the stimulus to investment that came from the negativereal interest rates experienced on occasion in the past.
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High demand for OFZs from abroad could soon result in negativereal returns for Russia-based investors, creating a possibility for a pullback.
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China's negativereal interest rates, caused by rising inflation, have also encouraged people to seek riskier and higher-yielding alternatives to bank deposits.
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With a negativereal long-term interest rate on federal debt, this is a great time to borrow for those with any business sense.