When two and four point to seven

Frankfurt

TWO, four, and seven: These are numbers bandied around in negative-yielding Europe that partly explain the recent surge into emerging markets assets and riskier high-yield bonds.

For example, a senior Allianz Global Investors bond manager expects US rates to eventually rise to a maximum of 2 per cent.

The firm, meanwhile, is budgeting from a business perspective for stocks to return 4 per cent a year in the next few years, with marginal returns on fixed income.

Meanwhile, fund managers highlight how Asian sovereign bonds and US high yi…