A top executive at a leading bond investment firm has cautioned that another steep increase in borrowing costs remains a possibility, as financial markets adjust to unwind high-risk positions taken during prolonged low-interest-rate environments. The warning reflects growing concerns among investors about the potential fallout from aggressive bets that may no longer align with shifting economic conditions. With market participants now forced to reverse earlier speculative moves, the stability of global debt markets could face renewed pressure. Analysts are closely watching whether central banks will respond to prevent further volatility in lending rates.
Bond giant’s investment chief warns that further sharp rise in borrowing costs is ‘feasible’ as market participants are forced to unwind losing bets
