Report
Patrick Artus

The liquidity trap for investors

The massive increase in liquidity provided by central banks is bound to lead to: Low risk-free interest rates; High volatility in financial markets; A higher capital requirement due to this high volatility in risky asset prices, leading investors to reduce their holdings of risky assets. If investors are faced with low risk-free interest rates, reduced holdings of risky assets and a high level of capital that must be remunerated, it is clear that the returns they will be able to offer savers will become very low.
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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