Bonds have seen price declines and record yields over the past decade. Parts of the financial system could therefore now come under pressure
The selloff in global bond markets has pushed borrowing costs to their highest levels in more than a decade. That means potentially heavy losses for banks, insurers, pension funds and asset managers who own trillions of dollars in government and corporate bonds after adding them to their portfolios in recent years.
Politicians and investors are worried that the recent changes could cause serious damage to various parts of the financial system. “We are watching this (…) very closely to see if anything breaks out,” said Salman Ahmed, global head of macro at Fidelity International.
2023-10-05 17:16:56
#suffers #bond #selloff
