The rise of government bond yields has increased the risk of market turbulence, Legal & General Investment Management warns.
At 11 July’s fundamentals briefing, Legal & General investment strategist James Carrick says government bond yields rose above the long-run rate of economic return in the developed world for the first time since 1999, adding to market instability. Legal & General says in the absence of any financial market shock, global growth is expected to continue to be steady, sustained by roaring emerging markets and compressed credit spreads. But it says credit markets fundamentals are deteriorating; risk-free rates are rising as governments try to slow economies and corporate debt is climbing rapi...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes