Add central banks to the wall of fear for world credit score markets.
This yr’s rally in threat property is extra to do with a $1 trillion central financial institution liquidity injection than any enchancment within the financial outlook, based on Citigroup Inc.. That large tailwind — sufficient to lop 50 foundation factors off the investment-grade threat premium — could quickly change into an enormous drag as policymakers get again to quashing inflation, having extinguished the banking-sector hearth.