Getting through the hangover

The credit-crunch hangover is affecting many asset classes, including corporate bonds. But government bonds are faring better as investors look for safe-haven investments

The credit crunch is a crisis that threatens global growth. The freefall in the US housing market has resulted in multi-billion-dollar write-offs from some of the world's leading investment banks - and the effects are unlikely to stop there. What are the implications for global bond markets? The credit crunch is a hangover from too many cheap loans being made to consumers - not just in the US, but all over the world. Despite the fact that many borrowers were sub-prime - in other words, could not really afford the amount of mortgage or other debts they were taking out - mortgage brokers k...