QE’s 'great flood' will avert bond liquidity crisis, says JPM’s
Stealey  By on  JP Morgan's bond star Iain Stealey has brushed
off concerns over a potential rush to the exit for bonds,
arguing that there is still plenty of liquidity in the global
financial system to support the asset class for some time.
With many commentators talking of a 'great rotation' out of
bonds into what are perceived as more attractively valued
equities, Stealey argues that for now, the actions of US and
Japanese monetary policy makers will avert such a scenario.
Euro stars AAA-rated Stealey, who helps to manage over $14
billion in European and global bond mandates, believes that
rather than a 'great rotation', the developed world's central
banks had created a 'great flood' of liquidity that will ensure
inflows continue into all asset classes, including bonds.  He
told Citywire Global: 'The European Central Bank and the Bank of
England may have stopped for now, but could start up again.
There is still plenty of liquidity out there