Bondholders risk $2.6 trillion hit on even a modest yield rise
A modest rise in yields that inflicts trillions of dollars in losses. The potential for steep losses is a legacy of the tilt toward longer-term borrowing during the era of historically low rates. The higher duration is, the larger the drop in prices. With a half-point increase in yields, the hit to the $68 T Bloomberg Global Aggregate Index would be around $2.6 T.