Bond bubble: One huge bang or a series of mini-pops?

clock

Cazenove Capital CIO Richard Jeffrey examines the scenarios with the greatest 'potential to sting' fixed income investors.

Have you ever watched a child blowing up a balloon? There is that initial huge effort necessary to turn the limp bag made of coloured rubber into a small globe. And then it seems to get easier with each successive puff. The balloon gets bigger and bigger, and the moment arrives when you know it is going to burst. But it does not, it becomes even more extended. You do, of course, warn the child that the balloon is at capacity, but your warning is lost in the excitement of this wondrous object getting larger and larger. And you know what the denouement is going to entail. A sudden bang ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Almost all investors and wealth managers plan to increase high yield focus in next two years

Almost all investors and wealth managers plan to increase high yield focus in next two years

Stock market correction expected

Sorin Dojan
clock 07 July 2025 • 1 min read
Global ESG backlash has not eroded demand for UK green bonds

Global ESG backlash has not eroded demand for UK green bonds

This year's auctions oversubscribed

Sorin Dojan
clock 03 July 2025 • 4 min read
Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Responding to ‘increased investor demand’

Eve Maddock-Jones
clock 25 June 2025 • 2 min read
Trustpilot