Aegon's Snowden: Italy could be next Northern Rock

Aegon Asset Management's new hire, Stephen Snowden, has warned the Italian bond market could face a Northern Rock-style collapse if investor sentiment weakens further.

Snowden, poised to take over on the group's Investment Grade Bond and Investment Grade Global Bond funds from co-head of fixed income David Roberts, warned investors against picking up Italian debt following the spike in yields, adding Italy's bond market is already 'uninvestable.' "The Italian government bond market will be no different to Northern Rock if confidence disappears," he said. "With the burden of debt Italy has, and given this is about fear, people will not buy more now, and if you do you are signing your own resignation letter." Snowden's extremely pessimistic outlook...