M&G's highly-rated bond fund manager Richard Woolnough has said he would raise rates this year if it were up to him - but said such a move could present a buying opportunity.
A concentration of flows among an increasingly small pool of funds is prompting buyers to turn away from the biggest players due to fears over performance, liquidity and communication.
Corporate bond managers have begun to shy away from participating in deals dominated by some of their larger peers as market liquidity continues to contract.
M&G retail fixed income head Jim Leaviss has relinquished his lead manager role on two of his main portfolios as part of a reshuffle of the team.
Three M&G funds including Tom Dobell's giant Recovery fund have been added to Bestinvest's 'dog list', making up more than half of all assets listed.
M&G's Mike Riddell has questioned the sharp rise of China's investment to GDP ratio, comparing the figure with former bubble countries including Iceland and Asian countries during the 1997 crisis.