Global bond and equity markets contract by $5trn so far this year

Heading for biggest annual nominal losses since 2008

Global markets have suffered their biggest overall losses in nominal terms since the 2008 financial crisis so far this year, with global bond and equity markets declining in unison by a cumulative $5trn.

In an unusual turn of events, both bond and equity universes have been on the decline this year. Bond markets have been dampened by rising US interest rates, with almost all fixed income benchmarks suffering losses. The Bloomberg Barclays Multiverse, the broadest bond market benchmark according to the FT, has seen its market capitalisation shrink by $1.34bn over the period. Meanwhile, stock markets across the globe have also been suffering lately, with concerns over the global economy and lacklustre corporate earnings forecasts hitting US markets; strong dollar causing drops in eme...