Credit levels may lead to 'market turbulence'

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 ra...