Rising Stock-Bond Volatility Correlation Is Undermining Global Risk Models | Council on Foreign Relations

Investors have long treated bonds as a hedge against falling stock prices, but they no longer work that way. Regulators need to demand changes in bank risk management, and governments need to restore fiscal prudence.

Jun 12, 2026 - 00:00
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Rising Stock-Bond Volatility Correlation Is Undermining Global Risk Models | Council on Foreign Relations
Investors have long treated bonds as a hedge against falling stock prices, but they no longer work that way. Regulators need to demand changes in bank risk management, and governments need to restore fiscal prudence.

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