Investment Banking

Recent volatility exposes bond market dangers

A complacent, short-term mentality has put investors in a precarious position should some bonds lose value quickly

Recent volatility exposes bond market dangers
Photo: Mark Airs / Ikon Images / Getty Images

With recent eurozone headlines, weekly Trump surprises, a rising US rate environment, and March 2019’s Brexit deadline, it is clear that financial markets as a whole have a fair amount to deal with.

As we look at bond markets, however, where fixed income securities have seen a 10-year bull-run in credit valuation, the question on everyone’s lips is whether the market is sufficiently, structurally prepared for a sell-off.

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