Bondholders Risk $2.6 Trillion Hit on Even a Modest Yield Rise

(Bloomberg) — After a wild week on Wall Street that saw inflation expectations reach decade highs, portfolio managers are staring down an ever-more dangerous prospect: A modest rise in yields that inflicts trillions of dollars in losses.

Most Read from Bloomberg

It’s a result of investors’ exposure to duration, a key gauge of risk for bondholders that’s near record highs. Even a half-percentage point jump in yields from here, to roughly the pre-pandemic average in 2019, would be enough…

Read More