Sub-zero yield 'rollercoaster' hits corporate curves

Spreads in the corporate bond market have been in freefall over the past couple of weeks and now a short dated Nestlé note is reportedly the first corporate bond to trade at a negative absolute yield. But bankers say the movement in longer dated bonds has been even more extreme, producing ‘rollercoaster’ curves and that investors will just have to learn to love paying companies to hold their cash.