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Trillion-Dollar Monster Lurks as Bonds Price Out Duration Risk

  • Funds gorge on interest-rate risk as central banks go dovish
  • Moves in government yields not ‘one-way train’: Brown Advisory

Investors riding easy-money policies are breeding a trillion-dollar monster in the bond market, the likes of which has never been seen in decades of history.

Wall Street will tell you it’s low risk for now -- one that’s been hyped-up for years. But on the current trajectory, just a modest bump in yields near record lows could inflict a world of pain for traders all over the globe.