Tcam's Bathgate: Fixed income is a ticking time bomb

Comparing environment to 1994

Haig Bathgate, joint-CEO and CIO of Tcam Asset Management, has said the fixed income space is a "ticking time bomb" due to the interest rate sensitivity and illiquidity of the asset class.

Speaking to Investment Week, Bathgate said bonds are hugely sensitive to interest rates movements in the current climate, and unexpected interest rate increases could cause huge volatility in the market. Kames' Roberts: EMD is least appealing area of fixed income market "A big squeeze in the labour market is highly likely because unemployment in the US is below 5% and wages are rising, which feeds through to inflation. This is when the Federal Reserve will have to act pre-emptively and raise rates," he said. "We think that fixed income is a ticking time bomb as it is very interest ...