“‘Exit from unconventional monetary policy, when needed, may be difficult to manage and less smooth than desirable, possibly leading to sharp rises in bond yields and serious negative consequences for growth in a number of advanced and emerging economies,’ Pier Carlo Padoan, OECD’s deputy secretary-general and chief economist, said in the report. ‘A leap in U.S. government bond yields would result in capital losses for investors, and prices on other assets would most likely follow suit, with mortgage-backed securities and corporate bonds most strongly affected. [..] In comparison with 1994, this could be more disruptive given current higher leverage.”
http://www.economicpolicyjournal.com/2013/05/qe-exit-to-rattle-us-bond-markets-warns.html
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