Government Bonds as Risk-Free Benchmarks No Longer a Given -- Market Talk
Dow Jones2026/09/03 11:371137 GMT - Markets continue to anchor valuations around the assumption that government bonds represent the risk-free benchmark, Insight Investment's April LaRusse says in a note. "However, in a world of rising sovereign debt burdens, we believe that assumption deserves closer scrutiny," the head of investment specialists says. History has shown that highly rated corporates, supranationals and agency issuers can occasionally trade through government bonds, and there are some examples of that today. "As fiscal risks become more prominent, investors may need to reassess whether yesterday's valuation frameworks remain fit for tomorrow's markets," she says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
September 03, 2026 07:37 ET (11:37 GMT)
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