Rice: Safe havens at risk from 'massive' policy response

Cazenove's head of pan-European equities Chris Rice has warned investors piling into safe havens such as bunds are at risk from a huge policy response in Europe.

Investors have poured billions of pounds into German bunds, as well as gilts and treasuries, in an attempt to shield themselves from the ongoing eurozone crisis. The flood of money going into risk-off assets such as these has sent yields down to record lows, with real yields in negative territory. Rice said investors could be at risk if authorities act to tackle the huge disparities forming in Europe, where peripheral bonds are trading at record spreads to bunds. Rice, manager of the £831m Cazenove European fund, said a major policy response could be forthcoming in the next 3-6 mon...