Investors’ Risk Tolerance Shrinks as Sovereign Bonds Offer High Yields — Interview

Investors’ risk tolerance has diminished as safer assets such as government bonds offer relatively high yields, Adam Whiteley, head of global credit at Insight Investment told Dow Jones Newswires in an interview.

Higher government-bond returns encourage investors to switch into the next safest asset class along the risk spectrum, a backdrop which makes investment-grade corporate bonds look attractive, to the detriment of riskier equities or high-yield bonds.