For the last few years the big worry has been that the global economy would slide back into recession. Cash and sovereign bonds in "safe countries" were seen as safe havens. With those fears fading, a new worry is that bond yields, after falling for years, will shoot higher as central banks start to tighten and investors switch to shares – causing losses for bonds and threatening other assets. This note looks at the key risks for bonds: are they in a bubble? What is the risk of a 1994 style bond crash?
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