By Thomas Laskey, Investment Manager, Fixed Income, Aberdeen
Times are tough for investors in Europe at the moment. Expected returns on all investments are low, while negative yields are pervasive in euro government bonds.
The numbers might be surprising: currently more than 15 per cent of all nominal eurozone government bonds outstanding have a negative yield, down from around 30 per cent at the peak in April. In Germany, yields are below zero for bonds under four years maturity, 34 per cent of the total. In April, this stretched as far eight years' maturity. Yields may have risen since, but remain low.