Barclays Warns of Credit Pain in Return to 1970s Inflation Regime
- Rising prices, slower growth whacked corporate bonds in past
- Shift to stagflation would be greater threat to bond markets
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Rising prices amid a US economic slowdown will menace embattled credit markets, if history repeats.
The current inflation and growth environment is most akin to the 1973 to 1975 and 1978 to 1980 time periods, when credit markets did badly, according to Barclays Plc. strategists led by Dominique Toublan.