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BlackRock bond head says speculators on ECB QE making "mistake"
October 1, 2014 / 4:23 PM / 3 years ago

BlackRock bond head says speculators on ECB QE making "mistake"

LONDON, Oct 1 (Reuters) - Investors loading up on some of the euro zone’s riskiest government bonds on expectations that the European Central Bank will buy them are making a “mistake”, BlackRock’s head of European and global bonds said on Wednesday.

“The market is very much taking for granted that quantitative easing through a government bond purchase programme is coming and I think there are many, many obstacles to that still to come,” Scott Thiel, who oversees assets worth around $100 billion for BlackRock, told Reuters.

“If people are buying Spanish and Italian bonds because they think the ECB is going to buy them from them, I think that is a mistake.”

BlackRock, the world’s biggest asset manager, said in May that one of its main bond funds - which Thiel oversees - had cut its holdings of peripheral euro zone government debt to their lowest since the height of the crisis. (Reporting by John Geddie, Editing by Nigel Stephenson)

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