Why the BOE is Finding Corporate Yields Tough
Long-term sterling bonds suggest investors are quickly losing confidence in the Bank of England’s ability to support debt markets through the U.K.’s departure from the European Union. Holders have lost about 10 percent in as little as seven weeks on long-dated notes issued by Vodafone Group Plc, British American Tobacco Plc and WPP Plc. The bond sales took place after the central bank announced plans in August to buy corporate debt, sparking investor optimism. The mood has since soured because of concerns about a so-called hard Brexit, sterling’s tumble and the outlook for inflation. JPMorgan International CIO of Fixed Income Nick Gartside discusses with Anna Edwards and Manus Cranny on "Bloomberg Daybreak: Europe."
Most Recent Videos
Yale's Stephen Roach Says China Has a Debt Problem
34:09 - Yale University Senior Fellow Stephen Roach discusses S&P's downgrade of China's sovereign credit rating. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)