Nomura's Hodges blasts lack of 'common-sense investing' as investors pin hopes on BoE action

Expecting August rate cut

Central bank intervention and heightened expectations of a UK rate cut have led investors to abandon "common-sense investing", according to Nomura Asset Management's head of unconstrained fixed income Dickie Hodges.

The manager (pictured) of the $90m Global Dynamic Bond fund, which he launched in January 2015, said "central banks are in a trap they cannot get out of" as markets have already priced in an August rate cut by the BoE and expectations of other measures. However, this has led to extraordinary demand for some bonds even if their performance has skyrocketed in the short space of time since the EU referendum on 23 June. Tilney Bestinvest: BoE faces 'political backlash' if next round of stimulus fails Hodges explained: "We have seen a 30% return in the three weeks post-Brexit on one of ...