Gross Says Negative Rates Are Like ‘Supernova’ That Will Explode
- Global yields are ‘lowest in 500 years of recorded history’
- Gross’s Janus Unconstrained Fund has returned 3.2% in 2016
Gross Calls Negative Rates a 'Supernova' Ready to Explode
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Bill Gross, the manager of the $1.4 billion Janus Global Unconstrained Bond Fund, warned central bank policies that pushed trillions of dollars into bonds with negative interest rates will eventually backfire violently.
“Global yields lowest in 500 years of recorded history,” Gross, 72, wrote Thursday on the Janus Capital Group Inc. Twitter site. “$10 trillion of neg. rate bonds. This is a supernova that will explode one day.”