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It's Dangerous Out There in the Bond Market

Investors face damaging losses if yields rise even a little
A half-percentage point increase would wipe out $1.6 trillion

Bloomberg business news — Is There New Investor Concern About Bonds?

By

Anchalee Worrachate and

April 24, 2016, 11:01 PM UTCUpdated onApril 25, 2016, 6:31 PM UTC

Bond investors are taking bigger risks than ever before.

Yields on $7.8 trillion of government bonds have been driven below zero by worries over global growth, meaning money managers looking for income are pouring into debt with maturities of as long as 100 years. Central banks’ policy is exacerbating matters, as the unprecedented debt purchases to spur their economies have soaked up supply and left would-be buyers with few options.