Ben Emons, Columnist

Bond Market Bubbles Exist If You Know Where to Look

There are two potential trouble spots: U.S. investment-grade corporate debt and European government securities.

October 17, 2017 at 9:00 AM UTC

Ben Emons is the founder of FedWatch Advisors, a firm specialized in analysis and investing around the Fed. Previously he was associated with NewEdge Wealth as head of fixed income and Medley Global Advisors as Managing Director of Global Macro Strategy. The opinions expressed are his own.

Be on the lookout for bond bubbles.
Photographer: Ishara S. Kodikara/Getty Images

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

Fixed-income investors are playing defense. Surveys show they have a record weighting in short-term debt, whose prices are less sensitive to changes in interest rates than longer-maturity bonds. Fund managers are steering more of their portfolios into higher quality and liquid securities. The concern is that stronger global economic growth may spark faster inflation, prompting central banks to tighten monetary policies faster than anticipated.

Potential Bubbles