Hamish Douglass, the founder of Magellan says he thinks investors are seriously mispricing risk in both credit and equity markets, which could lead to a...

Hamish Douglass, the founder of Magellan says he thinks investors are seriously mispricing risk in both credit and equity markets, which could lead to a triple-whammy situation. In this video (which is a follow on from the article last week) Douglass outlines how there's a possibility that when 1) US Treasury rates rise, 2) Global bond spreads will blow out, and 3) Liquidity in credit and high-yield markets could become a problem (if investors run for the doors). Should interest rates start to normalize in the United States... we could see quite a lot of volatility. With that volatility you could have self-reinforcing events that as prices start to move in the credit markets, and people start to get nervous, they will seek liquidity. If they can't take it out of their credit portfolios, they then come and take it out of their equity portfolios. Watch the video here


Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.