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Bill Gross of Janus blames Fed for 'fake markets'

Bill Gross of Janus blames Fed for 'fake markets'
From Reuters - October 9, 2017

NEW YORK (Reuters) - Influential bond investor Bill Gross of Janus Henderson Investors said on Monday that financial markets are artificially compressed and capitalism distorted because of the U.S. Federal Reserves loose monetary policy.

I think we have fake markets, Gross said at a Janus Henderson event. Investors should brace for higher Treasury bond yields as the Fed begins to unwind its quantitative easing program but yields will edge up only gradually, he said.

Gross, who oversees the $2.1 billion Janus Henderson Global Unconstrained Bond Fund, said the Feds loose monetary policy had resulted in investors chasing yield and thus producing tight corporate spreads everywhere around the globe.

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