Pimco's Gross urges investors to avoid UK debt
NEW YORK Jan 26 (Reuters) - Investors should avoid UK debt, as the country's high debt level could hurt its currency, Bill Gross, manager of the world's biggest bond mutual fund, said.
"Gilts are resting on a bed of nitroglycerin," Gross said in his February investment outlook, posted on the Pacific Investment Management Co website on Tuesday.
Gross added UK interest rates are artificially influenced by accounting standards. Last year, accounting rules led to long-term real interest rates of 1/2 percent and lower, he said.
Germany is the safest, most liquid sovereign debt alternative, he said. (Reporting by Al Yoon; editing by Jeffrey Benkoe)
- Tweet this
- Share this
- Digg this