Investors are becoming increasingly concerned about stretched equity valuations and poor yields in the fixed income market, research from digital institutional investment platform Valk has found.
The study of professional investors across the UK, US, France, Germany, Hong Kong, Singapore, Australia and Brazil, found that 91% are concerned about stretched equity valuations, with 48% saying they are very concerned.
A further 90% are worried about fixed income yields, with 39% saying they are “very worried”.
More than a fifth said they expect a dramatic increase in the number of investment grade bonds paying negative yields in the year ahead.
The research was conducted by PureProfile, which interviewed 100 professional investors working for institutional investors, hedge funds, fund managers, pension funds, investment banks, private equity and venture capital in October 2021.
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