After the fall in prices, bonds offer higher yields again

Frankfurt “No place to hide.” This is how the private bank MM Warburg titled a report on the situation on the global bond markets: There is no escape. Bonds are experiencing an extremely weak market by historical standards.

In return for the increased yields, prices have fallen in a short space of time more than seldom in history. All segments are affected.

Martin Hasse, bond strategist at Bank MM Warburg, explains the sharp increase in yields with high inflation. Falling prices and currency depreciation: Investors have made significant losses with their bond portfolios. Strategists are now assuming that the worst is over, but at best advise cautious entry.

The most striking is the drop in prices for bonds from European companies with good credit ratings. The well-regarded corresponding stock market index from ICE BofA has fallen by 7.9 percent since the beginning of the year. Since its all-time high in August, the minus has totaled over nine percent.