Policy intervention at root of bond market problems - TwentyFour

Bond markets are set to stay correlated to equity markets, according to Mark Holman at TwentyFour Asset Management.

Traditional risk-off assets no longer offer a safe haven, the managing partner said, while some of them – gilts in particular – do not even provide income. “It will have nothing near the volatility of equities,” he said, “but you will find that fixed income could go down when the stock market falls.” Many of the current problems in the bond market result from policy intervention, Holman highlighted. With a single entity, the Bank of England, holding 31% of the gilt market and buying back more every week, downward pressure on yields remains. Holman (pictured) also expects interes...