Bill Gross, manager of Pimco, the world's largest bond fund, is best known to UK investors for his warning in January 2010 that gilts were "resting on a bed of nitroglycerine". That prediction proved to be wide of the mark as the asset class, particularly index-linked gilts, has outperformed almost everything else, a fact Mr Gross has since acknowledged. This is due in large part to the actions of central banks whose bond buying programmes have supported the price of government debt, so when Pimco warns that corporate debt is starting to exhibit the same signs of dependence on central bank intervention, it is well worth paying heed.
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