Why can a negative interest-rate policy result in an allocation of funds by investors to very risky

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Why can a negative interest-rate policy result in an allocation of funds by investors to very risky assets and potentially cause a price bubble?

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Bond Markets Analysis And Strategies

ISBN: 9780253337535

10th Edition

Authors: Frank J. Fabozzi, Francesco A. Fabozzi

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Question Posted: Jan 21, 2024 12:04 PM

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Why can a negative interest-rate policy result in an allocation of funds by investors to very risky assets and potentially cause a price bubble?
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Why can a negative interest-rate policy result in an allocation of funds by investors to very risky

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A negative interest rate policy NIRP is a monetary policy tool where nominal target interest rates are set with a negative value below the theoretical ...View the full answer

Bond Markets Analysis And Strategies

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