Bonds

M&G's co-head of fixed income Jim Leaviss has warned the UK could face losing its AAA rating on 5 December, the day of the Autumn Statement, as the growing budget deficit could force George Osborne to abandon plans for fiscal consolidation.

EUROPE

WOOLNOUGH

China should attack the Japanese bond markets and cause a full-scale funding crisis, unless the latter nation reverses a decision to nationalise the Senkaku/Diaoyu islands, a senior advisor to the Chinese government said.

PIMCO's Bill Gross, the manager of the world's biggest bond fund, has cut his stake in US Treasuries by 12%, ahead of a crucial meeting by the Fed later when it may announce further quantitative easing.

J.P. Morgan Asset Management's Nick Gartside bought Spanish 10 year debt as the ECB's bond buying plan, announced last week, means he now knows "the rules of the game".

Chief executive officer and chairman of Legg Mason Mark Fetting is to step down on 1 October.

Henderson is launching a European high yield bond fund for fixed income duo Stephen Thariyan and Chris Bullock.

Tim Barker has joined Old Mutual Asset Managers as head of credit research within the group's fixed income and macro team.

Swiss & Global has launched an emerging markets corporate bond fund to complement its existing fund range.