Investment - Articles - Will 2013 see a bond market price correction?

 The credit crisis of 2008 has seen a policy response unknown to many people currently working in global financial markets.

 Interest rates in the developed world have been dropped to levels so low that further reductions are virtually impossible, and then as developed economies continued to struggle, enter QE.

 The resultant flood of cheap money has caused bond yields to fall and alongside that there has been a massive build up of debt, at both a sovereign and personal level.

 At some stage, in the long run, there has to be deleveraging and with that one might conclude a re-pricing in the bond markets. Could this happen in 2013, or is that time of reckoning still someway off?

 When considering if the bond market will re-price lower in 2013 there are a number of factors to consider which might in fact cause bond markets to rally this year, or at least to slow/delay the pace of re-pricing.

 In our next Fundamentals briefing, Ben Bennett, Credit Strategist, Legal & General Investment Management, will be examining these issues and outlining how investors can navigate these short term issues whilst remaining cognisant of the long term outlook.