Biggest bond traders are on a negative-yield binge, and can make it pay

Section:

By Brian Chappatta and Andrew Wong
Bloomberg News
Sunday, August 21, 2016

It might be considered absurd, if not for the unprecedented contortions in global financial markets.

Pacific Investment Management Co.'s largest international bond fund and China are piling into negative-yielding Japanese debt, buying securities that pay out less than the purchase price. And there's a way to turn a tidy profit off the trade.

At the heart of the strategy is the world's insatiable appetite for dollar assets, which is presenting an opportunity for investors with greenbacks to spare: the chance to pick up extra yield, a luxury in an era of record-low interest rates. For dollar lenders, even three-month Japanese bills, trading at a rate of negative 0.24 percent, offer juicy returns through a swap transaction that locks in exchange rates. ...

... For the remainder of the report:

http://www.bloomberg.com/news/articles/2016-08-21/pimco-china-show-no-fe...



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Company Announcement
August 17, 2016

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For the remainder of the announcement and highlights of the 2015 drill program:

https://finance.yahoo.com/news/sandspring-resources-commences-2016-explo...



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