RBS: 'Sell everything' ahead of 'cataclysmic' crisis

Credit team warns of repeat of Lehman crisis

The RBS credit team has advised clients to "sell everything" except high quality bonds as it warns of a "cataclysmic crisis" in 2016 akin to the global financial crisis of 2008.

The bank's credit chief, Andrew Roberts, said global debt ratios have reached record highs, and global and trade loans are contracting, a "nasty cocktail" for corporate balance sheets and equity earnings, reported The Telegraph. They said they have seen flashing stress alerts not previously seen since the months before the Lehman Brothers crisis and forecast European and US stockmarkets could fall between 10% and 20%. Fixed income in 2016: The cracks have started to appear "Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowde...