The coronavirus pandemic has had an astounding impact on fixed income markets. In the first quarter of this year, we have seen some of the worst performance in risk markets since at least 2008 - and perhaps in history.
It is the speed of this adjustment that has surprised many. Not only has the global economy effectively shut down, but it has done so in the space of a month. Markets are not prepared to deal with risks of this magnitude, and the prolonged uncertainty has created panic. Q&A with PGIM Fixed Income's chief economist Nathan Sheets Market stress Markets in periods of stress always provide surprises, and this time is no different. Bonds usually go up in value when risky assets go down, but here we have seen virtually all assets declining in value. Many see this as a sign that supp...
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