The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bond Outlook April 21 2010

The SEC’s investigations of the behaviour of Wall Street banks reflects a major shift in the US political will and of popular opinion. Financial markets are nonetheless more risk receptive.

Bond Outlook [by bridport & cie, April 21st 2010]

For many months we have been fretting about government debt, which is no longer being financed by quantitative easing, and must therefore compete with the private sector for funds, thereby pushing up yields. This is one of the major pillars of our argument that recovery can only be anaemic (the other is the forced commitment of households in deficit countries to save more and spend less). The fear about the private sector being crowded out is now finding support from the IMF in its “Stability Report”.


Yet the long-expected steepening in Government yield curves has, thus far, been surprisingly limited. Our recommendation has therefore been to lengthen in corporate bonds, while maintaining short maturities for government bonds.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree