Business Standard

Global bond market's soaring performance leave investors nervous

This is a long way from the rallying cry of post-crisis investing, when weak growth and accommodative central banks spurred a hunt for yield.

The brokerage said that domestic flows may not be enough to protect India from any global sell-off, especially in large-caps. It added that analysts' estimates of a sharp earnings bounce-back doesn't give a true picture of growth concerns

The global bond market’s soaring performance has left investors queasy about the ride ahead.

The Bloomberg Barclays Global Aggregate index has earned 2.3 per cent through March 28, its best quarter since mid-2017. But with yields sinking across major sovereign markets, investors now face a dilemma. Buying government bonds at these levels is perilous because economic data may improve, while taking more risk could leave investors nastily exposed to a global downturn.
Jim Caron at Morgan Stanley Investment Management sees an opportunity to pick up yield after the Federal Reserve’s dovish pivot, which he says has unleashed value in lower-quality corporate

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First Published: Mar 30 2019 | 11:08 PM IST

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