Cazenove's McDonald: bond bubble is visible

McDonald said in his portfolios he is currently positioned between the bearish and conventionally defensive approach he took in 2011, and the selectively more constructive calls he made in 2012. On his "worry list" are bonds and bond proxies - investments which act like bonds. "US ten year Treasury yields are at record lows. Real rates are negative when adjusted for inflation. Investment grade bonds are yielding record lows. Government bonds are overvalued. Investors are moving to higher yield bonds. Bubbles are very visible in this market," he said. McDonald is also particularly ...