The capital markets are under massive tension due to the Corona pandemic. On the one hand, the partial or complete suspension of economic activities is expected to cause a 25% decline in global economic growth for a period of 1 to 3 months. On the other hand to counteract governments have put together massive fiscal packages and central banks have opted for extraordinary monetary policy measures.
OPEC and its allies, including Russia, also agreed to cut global oil supplies in order to stem the fall in oil prices.
It remains open how quickly the economy will recover. Labour market data are particularly poor in retail trade, accommodation and food services, and manufacturing. The right medicine for the capital market would be a vaccination or a drug that calms not only the stock market but also the population.
Development of bond yields of US- and EUR-Government-Bonds and EUR-Corporate-Bonds Investment-Grade (04/2015-04/2020)
Development of bond yields of European High-Yield-Bonds compared with global High-Yield-Bonds and Emerging-Markets-Corporate-Bonds (04/2015-04/2020)
The development of historic yields is not a reliable indicator for future developments of a specific asset category or asset class. The charts above do not include any fees or costs.
Ratio-Overview (more information can be found at www.erste-am.com)
Prognoses are no reliable indicator for future performance.