Bond veteran: I am most nervous about fixed income since 1990

Anna Fedorova
clock • 2 min read

Veteran US bond manager Bill Eigen said he has never been so nervous about fixed income markets during his entire career, which spans more than three decades.

The manager (pictured), who currently runs $36bn (£23bn) in absolute return and opportunistic fixed income strategies for J.P. Morgan Asset Management, began his financial career in 1990. Although he managed money through the 1994 bond crisis, he said that period was "easy" compared to the losses bond managers are facing in the current conditions. "It was easy back in 1994, because treasuries were yielding 7%-8%, so there was so much coupon coming from holding them," he explained. "Now they are at 1.5%, and the risk increases the closer you are to 0%. Bond funds could easily suffer...

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