Thursday, August 04, 2016

Could Investors Lose $3.8 Trillion 
IF The Bond Market Gets Back To Normal?
Business Insider article explores the possibility of yields on bonds going higher - which for new bond investors means better yields but for existing investors means loss of capital as when interest rates/yields go higher, bond prices go lower & vice versa ..  "This year's dramatic fall in yields on bonds issued by investment grade sovereigns has again raised the risk that a sudden interest rate rise could impose large market losses on fixed-income investors around the world .. A hypothetical rapid reversion of rates to 2011 levels for $37.7 trillion worth of investment-grade sovereign bonds could drive market losses of as much as $3.8 trillion, according to our analysis."
LINK HERE to the article

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