Just days after the chaos surrounding the Capitol earlier this month as lawmakers sought to confirm President-Elect Joe Biden's victory, a strange market phenomenon occurred.
For the first time in history, real yields on US investment grade corporate bonds turned negative last Monday (11 January). According to Goldman Sachs' latest Market Monitor report, this reflects the "combined effects of accommodative monetary policy and a firming in inflation expectations", following somewhat of a 'blue ripple' as Democrats gained control of the Senate. Given a simultaneous backdrop of all-time high duration across the asset class, Goldman Sachs warned fixed income investors "need to be as selective as ever". Bringing green back to the greenback: Biden's clean ene...
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