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Bonds No Longer Work to Diversify Stock Risk, Credit Suisse Says

Investors can no longer rely on bonds to help mitigate equity risk because the relationship between assets has broken down, according to Credit Suisse Group AG.

The 21-day correlation between the S&P 500 Index and 10-year Treasury yield turned negative on Aug. 21, after having been at nearly 0.80 in mid-July.