Should Investors Treat Treasuries and Gilts with Caution?
The hottest craze in fixed income is at risk of overheating. A headlong rush into higher-yielding, long-term bonds in recent years has created one of the most crowded trades in financial markets. Investors seeking relief from central banks’ zero-interest-rate policies have poured into government debt due in a decade or more, swelling the amount worldwide by a record $733 billion this year. It’s more than doubled since 2009 to about $6 trillion, data compiled by Bloomberg and Bank of America Corp. show. Investec Asset Management Limited Head of Multi Asset Income John Stopford discusses with Guy Johnson in London and Caroline Hyde in Berlin on "Bloomberg Markets: European Open." (Corrects title of guest in description.)