BlackRock Warns on Euro QE as Pimco Bets Against Volatility
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Bond investors have been too quick to bet the European Central Bank will buy sovereign debt, BlackRock Inc. said today, as Pacific Investment Management Co. looks to profit from the prospects of added stimulus.
While the ECB has set itself “an ambitious target” of increasing its balance sheet by about 1 trillion euros ($1.29 trillion), the low take-up of new cheap loans offered to banks to boost the economy is no guarantee of quantitative easing, said Owen Murfin, a money manager at BlackRock. A second tranche of targeted lending in December is likely to be larger, Murfin told a London press briefing.