Asset Management

Bank of England warns of bond market ‘breaking point’

Central bank's new crisis model suggests an investor stampede only a little larger than 2008 could derail Europe's corporate bond markets

  Bank of England
Bank of England Photo: iStockPhoto

The Bank of England is worried about how Europe's corporate bond market would fare in times of stress.

The UK's central bank today set out the initial results of a pilot study into liquidity in the sector - and has warned that an investor stampede out of the asset class one-third larger than at the height of the crisis in 2008 could push the market to "breaking point".

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