Bigger issues than ‘Brexit’ on the horizon

Bigger issues than ‘Brexit’ on the horizon

The prospect of the UK leaving the European Union may not be the biggest risk facing global bond investors, AllianceBernstein has warned.


In a note to investors, AllianceBernstein head of fixed income Ashish Shah said the referendum was indicative of “much bigger issues” facing the global economy.

“It’s a symptom of how global growth remains challenged in the face of significant demographic changes and the accumulation of debt, and it’s a reminder of the significant limitations of monetary policy in dealing with such issues,” he said.

Mr Shah suggested that risk would remain regardless of the outcome of the referendum.

“If the global asset bubble created by central bank bond purchases bursts, that represents a threat to future growth, add to this the fact that China is challenged by debt accumulation and the US has started to raise interest rates, and it’s clear that Brexit is just one of a number of risks,” he said.

These risks extend to Australian investors, Mr Shah added, citing the potential for a real estate market correction and the exposure to Chinese commodities demand as evidence.

 

Read more:

Deloitte acquires asset management consultant

Perpetual named trustee for Singapore REIT listing

'Jury still out' on objectives-based funds

Liquidnet unveils new algorithms

More funding needed for ‘scale-ups’: AVCAL

Related Articles

 

Bigger issues than ‘Brexit’ on the horizon
investordaily image
ID logo
promoted stories

Appointments

Stephen Glenfield

FASEA appoints new chief executive

Reporter

David Murray

David Murray commences new role as AMP chairman

Reporter

Adrian Went

ANZ names new group treasurer

Reporter

Analysis

investordaily image

Super shouldn’t be a lottery

Tim Stewart

investordaily image

Can infrastructure equities cope with rising rates?

James Lydotes

James Swanson

Is this as good as it gets?

James Swanson