Poland becomes first EM borrower to issue negative-yield bonds

London

EUROPE'S warped credit markets took a new turn on Tuesday when Poland became the first emerging market borrower to issue a bond at a negative yield.

Until this week, the only sovereigns to have sold new debt at negative rates had been the highest-rated eurozone governments. Those deals had been denominated in euros. Poland issued in Swiss francs instead, taking advantage of a market with the lowest deposit rate in the world, at -0.75 per cent.