Ultra-low and negative bond yields may push debt investors to look at equities with bond-type characteristics, the global head of equity trading strategy at Citi told CNBC on Thursday.
Antonin Jullier called these investors "bond refugees" and said they were interested in stocks that had "low volatility, will not tend to sell off dramatically when there is a market hiccup and will pay a dividend."
"As returns are getting less exciting on the bond side, (investors are saying,) 'what can we look at in equities, which looks as close as possible to a bond?'," Jullier told CNBC Thursday.
The global stock of negative-yielding sovereign debt stands at over $11 trillion, according to Fitch Ratings. Government bond-buying programs from the likes of the Bank of England and negative-interest rate policies from the likes of the European Central Bank (ECB) have helped push bond prices higher and yields lower. Yields have an inverse relationship to the price.
Benchmark 10-year U.K. gilts yielded 0.535 percent on Thursday, having hit a record low of 0.515 percent on Wednesday after the Bank of England failed to meet it bond-buying target in its revived asset-buying program.