Low yields and low volatility a growing bubble

Fed-sponsored low rate environment a ticking time bomb

smoke-volatility

Former US Federal Reserve chairman Alan Greenspan, with his lock-step 25 basis point lowering of interest rates, effectively removed risk from the financing equation, thereby increasing the risk in the rest of the world. It was not only possible, but actually quite simple, to predict US short-term rates with laser-sharp precision. The resulting complacency was clearly one of the causes of the global financial crisis, which can be described as the hunt for, and subsequent creation of, novel ways

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here