“Bond prices are just at all-time highs,” the CEO said in a interview with Bloomberg Television’s Francine Lacqua. “The Bank of England buying even more is just going to push the price up even more. We’re getting into a dangerous situation.”
Bloomberg News reports that Gilbert, who last year arranged $500m in credit lines to help fund redemptions in the event of a bond sell off, said he and the regulators had expected the shock from Britain’s vote to leave the European Union to affect fixed income.
Asset managers, including Aberdeen, were instead forced to temporarily suspend trading in property funds after a surge in redemption requests after the referendum.
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