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CFA SINGAPORE INSIGHTS

Negative interest rates: Carry an umbrella at all times

Portfolio managers consider adjusting their investment strategies to avoid getting caught in a downpour unprotected when an economic storm hits

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The doomsday scenario that experts feared most - runaway inflation - hasn't materialised yet, but it pays to always be prepared to deal with adverse situations when they arise.

YES, this sensationalistic headline is true. Negative interest rates are available in Denmark on adjustable-rate mortgages with durations under five years. So after paying some upfront fees, borrowers on these loans receive a check from the bank every month as a thank-you payment.

How can...

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