Raymond Sagayam, co-head of asset management at Swiss private bank Pictet, has issued a stark warning about the structural integrity of global fixed-income markets.
The bond expert argues that the combination of rapidly rising sovereign debt and persistent inflationary pressures is creating a "toxic mix" that threatens financial stability.
Sagayam’s assessment highlights a growing divergence between market pricing and fundamental fiscal realities.
As governments worldwide continue to borrow at elevated levels to service deficits, the capacity of central banks to manage inflation without triggering a debt crisis is being tested.
This dynamic is particularly acute in regions where fiscal buffers have been eroded by years of expansive policy.
The warning comes as financial conditions tighten across multiple jurisdictions.