Bond backs credit as spreads return to more stable levels

Barclays Wealth annual Equity Gilt study suggests similarities between the Great Depression and today's global economy, but argues worst may be over

The world in 2009 faces a raft of comparisons with the Great Depression. However, the global economy is unlikely to slide into such extreme circumstances, says Barclays in its annual Equity Gilt study. It warns of potential similarities in financials performance and credit spreads. The annual study, written by managing director, head of asset allocation Tim Bond, examines international markets for the effect of inflation and deflation and other aspects of the UK and US economies. Due to the extreme nature of the economic crisis, the study looks at the comparison with the collapse of...