A bond bubble?

We need to worry about a bubble building in the bond market

Something odd is happening in the bond markets globally. Just look at some of these data points. Unprecedented on multiple dimensions. Never seen anything like these.

• $15 trillion worth of bonds now trade at negative yields globally.

• 43 per cent of bonds outside the US are negative yielding and in Germany, the entire government bond yield curve is in negative territory (up to 30-year maturity).

• Multiple junk bond issuers in Europe are effectively getting paid to borrow money.

• Despite nearly destroying the world economy 10 years ago, sub-prime, zero down payment mortgages are making a comeback.

• 75 per cent of commercial real estate mortgages are