Leaviss sees no bond bubble

M&G head of fixed interest believes low inflation will help bonds to continue to outperform

M&G head of fixed interest Jim Leaviss believes there is no bubble in the bond market and sees no reason why bonds cannot continue to outperform equities. Speaking at a roundtable discussion on fixed interest last week, Leaviss said low levels of inflation and global economic growth will keep bonds on a firm footing. 'I don't think we're in a bond bubble, not just because I'm not convinced we haven't seen the worst of the equity markets just yet, but because valuations for bonds still look pretty good,' he said. He said underlying UK inflation of around 2% means bonds are able to prov...