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By Mike SCHMIT, CIO Private Banking Europe, Edmond de Rothschild
Bond markets may not be signalling a crisis. The more important question is whether other assets are prepared for a structurally higher price of capital.
For more than a decade, investors lived in a world in which money was almost free. Central banks suppressed volatility, government bonds offered little or no income, and the search for yield pushed capital into equities, credit, real estate and private markets. That world is fading fast.
Long-term sovereign yields have risen sharply across developed markets. In the United States, the 10-year Treasury is again approaching 5%, while long-dated yields in Europe, the UK and Japan have also moved...
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