Six investors on the safety status of govvies
By Jessica Tasman-Jones, 20 Jun 18
Duration and inflation risk are raising questions about whether government bonds can continue to be viewed as safe haven assets in the current market environment.
“We have observed several incidents of high correlation on market dips in the last few years. However, it is by no means certain that this would persist in a severe and prolonged equity market sell off. Wise investors know all too well that just because something is expensive does not mean it cannot get more so. Is this time different? I doubt it.”