Schroders Warms to Government Bonds as Stagflation Worries Mount

The Schroders Plc headquarters in the City of London.

Photographer: Betty Laura Zapata/Bloomberg

UK asset manager Schroders Plc has closed its short position in government bonds, citing the increased risk of recession.

Patrick Brenner, chief investment officer for multi-asset at the £800 billion investment firm ($1.08 trillion), said the switch reflects concerns that the Middle East conflict is now more likely to hurt economic growth than lift price pressures.