Goldman's Beinner Says Leverage, Low Volatility Pretty Worrying
- ‘Huge’ amount of bond issuance is another concern, he says
- McCaughan says U.S. stocks nowhere near bubble territory
Goldman Sachs Asset Management Chief Investment Officer Jonathan Beinner, Aberdeen Global Head of Alternatives Andrew McCaffery and Principal Global Investors CEO Jim McCaughan speak with Bloomberg's Julia Chatterley at Bloomberg Invest New York about the global macro landscape. (Source: Bloomberg)
Jonathan Beinner, the chief investment officer of fixed income at Goldman Sachs Group Inc.’s asset-management unit, said he’s concerned that people are underestimating the risk of market fluctuations at a time when companies are taking on more debt.
Beinner said investors have previously considered it low when the the Chicago Board Options Exchange Volatility Index, or the VIX, was at 15, and it’s now trading closer to 10. The so-called fear gauge recently reached its lowest level since 1993.