Bond crash is so crazy BlackRock Inc is ripping up its risk models

June 15, 2015 at 15:13 (Uncategorized)

Financial Post

With US$4.8 trillion in assets — or about the size of Japan’s economy — no one manages more money than BlackRock Inc. So, it’s worth paying attention when the firm says it’s time to cast aside its trusted models for assessing risk in bonds.

[np_storybar title=”Worst bond crash in almost 30 years is early warning of turmoil to come” link=”http://business.financialpost.com/investing/worst-bond-crash-in-30-years-is-early-warning-of-turmoil-to-come”]
The $1.2 trillion meltdown in just three months is an early sign that it will not be easy to wean the world off six years of zero rates — and central banks have used up their arsenal. Read on
[/np_storybar]

The gyrations gripping the world’s fixed-income market are so great that it’s almost impossible to make sense of them on a historical basis. In Germany, for example, yields on 10-year securities have surged from almost nothing in late April to about 1 per cent last week — a move so…

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