Bonds

Bill Gross's $285bn Pimco Total Return fund led falls among the world's most popular bond portfolios after the Federal Reserve prompted a global sell-off by indicating it may start tapering its QE programme.

Enzo Puntillo, head of fixed income at Swiss & Global Asset Management, moved out of 30-year treasuries last month in his Julius Baer Total Return Bond fund as market fears grew about the possible tapering of the Federal Reserve's QE programme.

The era of easy money may continue for another two years despite US Federal Reserve chairman Ben Bernanke's 'bombshell' announcement last month, according to Fidelity's Ian Spreadbury.

Emerging market debt suffered its worst weekly sell-off for nearly two years in June, as investors reduced local currency exposure in anticipation of a rising dollar.

A sign that the great sell-off in bonds could be imminent was seen this week after yields on Treasury Inflation Protected Securities (Tips) turned positive.

Schroders has expanded its fixed income team with the appointment of Bogdan Popovici from US fund group Wellington Management.

Japan could be the next economy to default as its debt levels are unsustainable, according to Roger Webb, investment director on the credit team at Scottish Widows Investment Partnership (SWIP).

Kames Capital has hired Scott Fleming as fund manager on its fixed income team to focus on exotic bond analysis.

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