Report
Patrick Artus

Could there be a move towards a situation where returns on all assets become virtually zero?

Yields on bonds in OECD countries have now become practically zero and could remain so. This should normally drive investors to switch into other assets (equities, real estate), and gradually to a decline in the returns on these other assets: in the long term , the returns on all assets could trend towards zero if monetary policies keep long-term interest rates at zero. If this situation occurs, it would cause a major shock in financial institutions: all asset management and insurance companies would be destabilised and threatened.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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