Insight - Supply squeeze won’t ease on global stocks and bonds

IPO rush: Pedestrians are seen reflected in an electronic quotation board displaying stock market index of the Tokyo Stock Exchange. The IPO rush is expected to continue into 2021 as private equity owners cash in on buoyant markets. — AFP

AN unrelenting squeeze on the supply of global shares and sovereign bonds shows little sign of easing next year, with companies and central banks predicted to be big buyers of these securities in direct competition with investors.

The supply mismatch could help to sustain the decade-long bull run in global equities and also keep bond yields at very low levels.