Investor enthusiasm to return with anticipated slashes in interest rates

Before September's dramatic events, prompted by the collapse of Lehman, bond markets had already div...

Before September's dramatic events, prompted by the collapse of Lehman, bond markets had already divided into two camps, with safe-haven government bonds enjoying all the plaudits while more risky credit markets had crashed to earth. Since September, credit spreads for both investment grade and high yield have been pushed out to all-time wides, predicating higher levels of default than at any time since the Great Depression of the 1930s. Meanwhile, government bonds have been boosted by the falling oil price, receding inflation concerns and clear evidence of a sharp economic slowdown in We...