Nullrenditen

Nullrenditen, literally “zero yields” in German, refers to investment assets that produce little to no return over a given horizon. In common usage it describes nominal yields near zero on safe instruments such as government bonds, cash, or short-term money-market products. The term is often used in discussions of prolonged periods when policy rates and risk premia are very low.

Causes and context include monetary policy at or near the zero lower bound, strong demand for safe assets, and low inflation or growth expectations. While nominal yields may be around zero, real yields can be negative if inflation erodes purchasing power. Conversely, if inflation rises, nominal yields tend to rise to compensate savers and investors.

Measurement and scope: Yields are typically quoted as yield to maturity for bonds or current yields for cash instruments. Real yield equals the nominal yield minus expected inflation. Some assets may show a zero or near-zero yield but still offer capital changes through price movements, though such gains are not guaranteed and depend on market conditions.

Implications: For savers, nullrenditen reduce the ability to preserve purchasing power without taking additional risk. For investors, they can prompt shifts toward higher-risk assets, longer-duration exposures, or alternative investments. For borrowers, low yields lower financing costs, but reinvestment risk, credit risk, or fees can offset apparent benefits.

Examples and policy context: In various periods, government bonds from advanced economies have traded at or near zero yields, especially for short maturities. Central-bank actions such as quantitative easing and forward guidance have contributed to extended stretches of low or near-zero yields, shaping portfolio choices and retirement planning.