Brind.

Schroders and Bank of America Assess Tail Risks in Global Markets

1 report, 1 independent Updated Jan 1
AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

Schroders and Bank of America published an analysis of market tail risks and investment trends. The firms noted that US 10-year bond yields have topped 5 per cent for the first time since 2007. This rise in yields is cited as the biggest tail risk facing markets, according to Bank of America’s fund manager survey. The current narrow gap between equity earnings yields and bond yields is a point of concern for investors.

From irishtimes.com

Why it matters

Some supportBrind's analysis of the reports

The high yields offer investors a more attractive alternative to equities. While strong earnings growth is expected to continue through 2026, 2027, and 2028, if those growth rates are not achieved, the risk-free attraction of a 5 per cent yield becomes increasingly difficult to ignore.

From irishtimes.com

Who's involved

  • SchrodersAsset management company involved in the analysis of market tail risks.
  • Bank of AmericaFinancial services corporation whose economist contributes to the market risk assessment.

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • Goldman SachsSpeculative

    Goldman Sachs might face increased pressure on valuations due to the rise in borrowing rates.

  • Bank of AmericaSpeculative

    Bank of America could experience pressure on equity valuations and lending margins due to rising bond yields.

Keep exploring

The entities involved

Related events

Coverage

Newest first; wire copies grouped