Robeco: Protracted negative rates to lead to 'brave new world'

Negative rates will drive investment outcomes for a “protracted period” as the world adapts and responds to the Covid-19 crisis, according to Robeco.

In the asset manager's latest five-year returns outlook, it warned investors that ultra-low nominal and negative real interest rates were a "key feature of the current investment landscape" and were likely to remain so for some time. "We foresee a protracted period of negative real interest rates, meaning their impact on the relationship between economic fundamentals and asset price performance, and the consequences for multi-asset allocation, will be critical," Robeco's report said. "We are living in a time of radical transition, and volatility in markets will remain elevated." In...