A US bail-out of Citigroup soothed the financial markets on Monday, but shell-shocked investors remain wary of the staying power of post-rescue rallies and the ramifications of a protracted recession on corporate profitability and default rates.

“It remains to be seen whether this is enough to start bringing confidence back to the system,” said Jay Mueller, senior portfolio manager at Wells Capital Management. “We have thought that several times and been wrong each time.”