Aberdeen's Gilbert warns on bond bubble brewing

'Dangerous situation' as prices reach record high

clock • 2 min read

Martin Gilbert, CEO of Aberdeen Asset Management, has said the fixed income market is approaching a "dangerous situation" as central bank actions keep pushing up prices.

In an interview with Bloomberg Television, Gilbert (pictured) warned a bubble is building in the fixed income markets as prices hit record highs. Last month, the Bank of England cut interest rates rates to 0.25% and expanded its bond buying package by £70bn. This will include £60bn in government bond purchases, topping up the total QE asset purchasing package to £435bn, and an additional corporate bond buying programme of up to £10bn. Gilbert commented: "The Bank of England buying even more is just going to push the prices up even more. We are getting into a dangerous situation." T...

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