Negative interest rates are here. For how long and what the consequences will be for on investors, savers, borrowers and the economy is difficult to say.
On July 1st the FT reported that all Swiss government debt yields went negative. The last to go was a bond that does not mature for almost 50 years. Investors in the 50 year bond are willing “to pay more to hold the bond than they will get back in interest and repayment of principal.”
We hope the video below will give you some food for thought as the situation develops. Very low and negative interest rates have a devastating effect on the prospective income from Pensions and investments. If you need advice talk to your adviser. If you need help in selecting a FCA registered adviser contact us.