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
- Battle over Scottish independence slightly tightens in new poll
- More than 300 people missing after South Korean ferry sinks - coastguard
- Rivals show force in eastern Ukraine before talks |
- Tesco to step up price cuts as CEO defies pressure to quit |
- Samsung executive says Galaxy S5 to outsell S4, sees second quarter rollout for Tizen phone