Market Watch: A Historic Global Bond-market Crash Threatens the Liquidation of World's Most Crowded Trades, Says BofA

Article by Vivien Lou Chen in Market Watch

Global government-bond markets are stuck in what BofA Securities strategists are calling one of their greatest bear markets ever — which, in turn, is threatening the ease with which investors will be able to exit from the world’s most-crowded trades, if needed.

Those trades include long positions in the dollar, U.S. technology companies and private equity, said strategists Michael Hartnett, Elyas Galou, and Myung-Jee Jung. Bonds are generally regarded as one of the most liquid asset classes available to investors; once liquidity dries up there, that spells bad news for just about every other form of investment, other analysts said.

Financial markets have yet to price in the worst .......

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