Bridgewater’s Prince Says Bonds Are Risky in Zero-Rate World
- Co-CIO says ‘asymmetric’ risks to holding high-quality bonds
- Bond losses could outweigh potential gains, Prince said
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Investors are underestimating the risks lurking in near-zero interest rates on bonds, according to Bob Prince, co-chief investment officer at Bridgewater Associates, the world’s largest hedge fund.
While government and high-grade corporate debt have traditionally been places to hold wealth, the extreme low-interest world brought on by the Covid-19 pandemic has upended their role, Prince said in a Bloomberg Television interview Friday.