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Covid-19 and the ‘safe asset trap’, Virtual panel with Gita Gopinath

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Covid-19 and the ‘safe asset trap’, Virtual panel with Gita Gopinath

Commentary: Covid-19 and the ‘safe asset trap’

By Edoardo Reviglio in Rome

In recent decades the supply of safe assets has not kept pace with global demand. After the 2008 financial crisis, bond yields in many economies approached zero. A gap in the supply of safe assets was created, resulting in a ‘safe asset trap’. Covid-19 may help capital markets overcome this phenomenon.

Rising national public debts, as well as new virus-related instruments, may create large amounts of sovereign and EU bonds. Are yields going to be high enough to maintain the long-term value of assets?

Read the full commentary or download GPI 2020.

Meeting: Virtual panel with Gita Gopinath

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Tuesday 4 August, 14:00-15:00 GMT

Economic changes over the last year have had a severe impact on global flows of goods, services and capital, as well as asset prices and exchange rates. The external positions of all major economies have been affected. Gita Gopinath, chief economist at the International Monetary Fund, launches the 2020 External Sector Report, and is joined by a panel of speakers to discuss the results.

Request to attend the meeting.

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