Just when investors think that yields cannot possibly go any lower, a new record is broken. Usually this would be triggered by a major event such as uncertainty over the Greek elections, but this time it is different, says Daalder, Chief Investment Officer for Robeco Investment Solutions.

And while investing in an environment of negative yields may seem pointless as it would imply actively seeking to make a loss, there are many reasons why we have ended up in that situation, he says.
“You know that something out of the ordinary is going on when clients no longer appear to be primarily concerned about the remaining up- or downside for stock markets, but rather on how much lower yield in the 10-year government bond markets can go,” Daalder says.

Uncharted territory