Bonds

The first quarter was a rollercoaster for global credit markets with a severe, homogeneous sell-off, followed by a sharp, if more modest, central bank-induced recovery.

Just 10% of investors anticipate V-shaped recovery

Up to 13.7% default rate

Fixed income responsible for over 90% of net inflows

Coming out of Covid-19's shadow

Outlook for bond markets

European equities have declined 26% during 2020 owing to the rapid spread of the Covid-19 pandemic. Consequently, economic activity indices have declined to multi-year lows.

Exclusion and weighting basis

'Let the buyer beware'

Following the unprecedented falls across all financial markets in recent weeks, the safest government bond markets have had to become cash vaults for fund allocators trying to raise the liquidity needed to plug the fast-growing holes left by the equity,...