El-Erian: Implications for global markets of Bin Laden’s death

In net terms, the markets are likely to treat this mix — of a durable reduction in security threats and some possibility of isolated disturbances — as involving a net overall reduction in risk premia. This would bolster equity prices worldwide while placing some pressure on those government bond markets that traditionally benefit from flight to quality.

 

FT Alphaville » El-Erian: Implications for global markets of Bin Laden’s death.