So far, bond funds around the world have not seen widespread redemptions and there does not appear any panic.
Whether they would be quite so calm should a 15% or higher slide happen is far from clear.
There have already been however a few big name investment groups like PIMCO chopping back on their sovereign bond holdings and tuned-in investors may be now asking themselves whether they should be following suit.
The key question is; should there be a tipping point where the quiet concern becomes a rush for the door how would the asset management industry’s bond funds hold up?
This is something which nobody seems able to answer with confidence at this stage, but the sooner we can the better.
