According to Bank of America’s January global fund managers’ survey, the biggest threats to risky assets in 2025 are a sharp rise in bond yields, U.S. Federal Reserve rate hikes, and a global trade war.
Among the surveyed fund managers, 36% identified a disorderly increase in bond yields as a major concern, 31% pointed to Fed rate hikes, and 30% highlighted a trade war. The greatest tail risk—an unlikely event that could lead to significant losses—was inflation forcing the Fed to raise rates, cited by 41% of respondents.
On the positive side, 38% of fund managers viewed faster economic growth in China as the most beneficial development for risky assets.