How To Make Money With Negative Yielding Japanese Bonds
September 10, 2019
“Money managers at BNY Mellon and Pacific Investment Management Co. have snapped up Japanese bonds. Both companies have made the country the second-largest geographic allocation in some of their biggest international fixed-income funds. Ordinarily that wouldn’t seem remarkable, but right now many of Japan’s government bonds have a negative yield—it actually costs money to hold them to maturity.
BNY Mellon and Pimco aren’t alone. Investors from outside Japan more than doubled purchases of the nation’s debt in July. What’s the logic? It turns out that buying Japanese bonds can pay better than holding U.S. Treasuries, as long as you happen to be a dollar-based investor and hedge your exposure to currency swings...”
Now there’s more than likely more to this than this article explains but now you know it’s possible — at the very least its possible in this specific case.