Safe asset squeeze corrupts equity risk premium

clock • 1 min read

Low rates of return on risk- free assets caused by an ongoing supply squeeze will keep equity risk premiums elevated for the next few years, a Barclays Capital study says.

The 57th annual equity gilt study from the bank said abnormally low returns on safer asset classes led by a squeeze in their supply is "not likely to be corrected in the next few years," leading to...

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