Martin Gilbert, CEO of Aberdeen Asset Management, has said the fixed income market is approaching a "dangerous situation" as central bank actions keep pushing up prices.
In an interview with Bloomberg Television, Gilbert warned a bubble is building in the fixed income markets as prices hit record highs. Last month, the Bank of England cut interest rates rates to 0.25% and expanded its bond buying package by £70bn. This will include £60bn in government bond purchases, topping up the total QE asset purchasing package to £435bn, and an additional corporate bond buying programme of up to £10bn. Gilbert commented: "The Bank of England buying even more is just going to push the prices up even more. We are getting into a dangerous situation." The head of ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
