Davos 2018: M&G’s CEO Anne Richards talks to Jim Leaviss. Are markets headed towards another financial crisis?

This year’s Davos World Economic Forum (WEF) comes at a time where equity and credit valuations look high, where we have “obvious” bubbles in cryptocurrencies, and where bond yields – perhaps an anchor for all financial asset valuations – finally seem to be moving higher.  Global borrowing across governments, financial institutions, companies and households is at record levels.  Can the global economy cope with higher interest rates?  In this short video I talk to our CEO, Anne Richards, who has been talking on a panel at the Davos WEF on this very subject.  Are we going to see another financial crisis?

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Discuss Article

  1. Jim J Gasson says:

    Hi Jim,

    I would greatly appreciate knowing your thoughts on the potential USD repatriation effect (from USA tax reform) on bonds. For many years, companies have issued bonds to finance share buybacks and pay dividends. Conceivably now the billions in repatriated USDs can be used for those activities, as well as paying down debt. What might be the ripple effect?

    Thanks very much in advance for any input.

    Posted on: 26/02/18 | 1:52 am
    • Nicolo Carpaneda says:

      Hi Jim,

      Thank you for your comment. With more availability of USD repatriated cash and now less incentives to issue more debt in the US, companies may need to issue much less and therefore the US corporate debt market – and especially the IG space where bigger size, more international companies issue – might go into negative supply, providing good support for further price increases (same things equal). Hope this helps.

      Best,
      Nicolo

      Posted on: 26/02/18 | 11:20 am

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