Top bond manager warns Europe crisis 'will get a lot worse"

Mike Riddell, M&G's top performing bond fund manager, has urged investors to brace themselves for more pain in markets in the short term as the Greek crisis continues, with safe haven bonds set to see yields fall further.

Riddell, (pictured), who expects Greece will leave the eurozone following the latest setback - possibly within the next month - said the European turmoil will continue to support safe havens such as gilts, bunds and treasuries for now. "I think things will get a lot worse, and when you consider the number of AAA-rated assets has significantly decreased, while the liquidity supply is getting higher, that is a powerful supply/demand dynamic," he said. "As for Greece, I think it has to leave, but I think it will get worse first, so this safe haven bid will continue." Riddell, manager ...