Low-yield limbo
Central banks continue to push interest rates to new lows, a factor behind U.S. institutional investors' avoidance of international fixed income.
Debtors' dream: 10-year government bond yields continue to drop. Bonds from Germany, Sweden and the Netherlands yield less than 30 basis points, while those from Japan and Switzerland have negative yields.
Central bank control: Post-financial crisis, central banks continue to keep short-term rates at zero.
Disinflation dings: Even with falling rates of inflation in many developed economies, real short-term interest rates remain negative in many countries, including the U.S.
Home cooking: The exposure to zero-interest-rate markets for U.S. institutional investors is limited, with the vast majority of fixed-income allocations being domestic. Endowments and foundations have abandoned the asset class.
*As of Feb. 24. Sources: Bloomberg LP; Morningstar Inc.; NACUBO; Commonfund; National Association of Insurance Commissioners; Pensions & Investments
Compiled and designed by Aaron M. Cunningham and Gregg A. Runburg
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