Liz McCormick

Fixed income assets are working again as a hedge amid market chaos – the equities slump triggered by fear that the economy was recession-bound

CONVINCED a recession in the United States was near, some of the world’s most prominent money managers loaded up on government bonds this year in a bold bet that would atone for the punishing losses suffered in 2022.

Slowing economic growth plus persistent inflation could dash hopes for a pause in the Fed’s rate hikes, and pull the rug from under the rebound in risky assets

WHEN banks started going belly-up, the reaction in bonds was emphatic. Two-year Treasury yields slid a percentage point over three days in March, the most since 1982.