Strathclyde Associates based in Korea: Prospects for bond markets
The Bank of International Settlements has recently warned “that the aftermath of the financial
crisis is poised to bring the simmering fiscal problems in industrial economies to...
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Strathclyde Associates based in Korea: Prospects for bond markets
The Bank of International Settlements has recently warned “that the aftermath of the financial
crisis is poised to bring the simmering fiscal problems in industrial economies to boiling-point”,
and that drastic measures will be needed to head off a compound interest rate spiral.
The latest developments in Greece have shown that the warning is fully justified.
Sovereign debt
defaults may still occur, and the single currency system in Europe may not survive in its present
form.
Strathclyde Associates based in Korea, Bond Markets: Prospects for bond markets in mainland
Europe are therefore particularly uncertain.
Not all markets elsewhere will be similarly affected,
and some may even continue to benefit from the problems in Europe; but higher bond yields
everywhere seem to be unavoidable.
The US bond markets appears to have achieved an
enhanced “safe haven” status, and has improved slightly over the over the past month
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