In the options market, trades that make money if inflation drops below 1% – and even below 0% – have increased. Money managers are buying into government debt, undeterred by negative yields. They are also holding cash, which offers flexibility in the event of economic contraction. (Filepic US Fed Reserve)
BRUSSELS: Global bond investors are betting against the increasingly aggressive tactics taken by central banks in the chase for economic growth, by turning to strategies that profit when inflation fails to pick up.
In the options market, trades that make money if inflation drops below 1% – and even below 0% – have increased. Money managers are buying into government debt, undeterred by negative yields. They are also holding cash, which offers flexibility in the event of economic contraction.
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