Roubini Warns U.S. Yields Above 2% Will Bite Amid Excess Risk

  • Economist joins investors like Scott Minerd in warning of pain
  • Fund flows, growth among drivers of yields: Goldman strategist
Roubini Discusses Archegos Fallout, Markets, Policies
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A fresh spike in Treasury yields will rattle markets and could send more family offices and hedge funds down a similar path to Bill Hwang’s Archegos Capital Management, according to Nouriel Roubini.

Roubini, a professor at New York University’s Stern School of Business and a former adviser to the U.S. government, said the combination of low-to-negative rates across advanced economies and fiscal stimulus is leading investors to take excessive risk. He pointed to cyclically adjusted price-earnings ratios at highs seen in 1929 and the early 2000s as one sign of the recklessness.