Trading Glossary

Yield Chasing

Yield chasing is refer to the situation in which the central bank is surpressing the interest rates at the low or the negative levels. The current monetary policy of the central bank is usually running a zero interest rate policy (“ZIRP“) or a negative interest rate policy (“NIRP“).Even the yield chasers at the back of their minds fear a bust but they convince themselves that this cannot happen in the short run.