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The unraveling of the bond market will continue to batter stocks over the coming months, according to a Friday note from Bank of America.
Bonds are experiencing their worst decline since 1949 as interest rates soar amid a global central bank campaign to fight inflation. The US Aggregate Bond ETF is down 15% year-to-date, while global bonds are down even more.
But those soaring interest rates, and consequently falling bond prices, run the risk of forcing further liquidations in the stock market that would effectively unwind the most crowded trades held by investors over the years.
“Bond crash in recent weeks means highs in credit spreads, lows in stocks are not yet in,” BofA’s Michael Hartnett said……more here
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