People invest in bonds because they are safer than stocks. Government, municipal, and corporate bonds pay interest relative to interest rates set by the central bank and how risky they are perceived. Across the bond categories, there will always be funds (ETFs & Mutual funds) backed by these categories of bonds for investors to purchase and their value proposition is that they behave like the underlying asset. It's much more convenient for people to buy shares of a mutual fund or an ETF than to buy individual bonds at an auction, so it's an attractive product for them to offer and take a small management fee on top of.
> Just choose to invest in literally anything else that doesn't have a known negative ROI.
A fund manager who is responsible for creating a product that matches government bonds can't buy something else because it would no longer be what it is intended to be: a product which behaves according to how the underlying asset behaves.
Investors however, will buy other (riskier) products because it doesn't make sense to buy something with zero or negative interest, which puts more money into less safe hands, hence the talk about bubbles. If the only thing that is offering any return is a ponzi scheme and everyone is invested in it because nothing else is offering return, then it's going to end badly for a lot of people.
> Just choose to invest in literally anything else that doesn't have a known negative ROI.
A fund manager who is responsible for creating a product that matches government bonds can't buy something else because it would no longer be what it is intended to be: a product which behaves according to how the underlying asset behaves.
Investors however, will buy other (riskier) products because it doesn't make sense to buy something with zero or negative interest, which puts more money into less safe hands, hence the talk about bubbles. If the only thing that is offering any return is a ponzi scheme and everyone is invested in it because nothing else is offering return, then it's going to end badly for a lot of people.