Negative and ultra-low interest rates have become a well-established phenomenon globally, created in response to the Global Financial Crisis and the Covid-19 pandemic as an anitidote to financial and economic collapse. As a consequence, however, new risks have emerged in what this paper terms 'distortions'. This paper identifies the risks building in markets and institutions and concludes with six points for every investment professional to consider.
Authors:
Members of the CFA UK Negative Rates Working Group: Ian McLennan, CFA; Alessandro Tarello, CFA; Andy Burton; Anthony Cameron, CFA; David Crawford, CFA; Stefano Del Zompo, CFA; Ryan Maree, CFA; Cian O'Brien, CFA; Can Poge, CFA; Ven Ram, CFA; Joe Smith, CFA; Dumitru Vicol, CFA; Alice Yin, CFA and Aggie Yu, CFA.
