Bill Gross of Janus Global is drawing parallels to the board game Monopoly as he explains central-bank moves
by Mark DeCambre
Bill Gross has a fairly simple explanation for benchmark government-bond yields falling to record lows: weak bank lending.
The fixed-income expert, who manages an unconstrained bond fund for Janus Global Capital, made the case on Wednesday in a monthly market report that a lack of lending by the world’s big banks is hemming in credit and hobbling economic growth here and abroad.
Gross says highly levered economies are dependent on credit for its “stability and longevity.” He said banks and, specifically the credit they provide, are the financial lubricant that keeps the system chugging.