Fund Managers Fear Central Banks Will Create Next ‘Lehman’ Moment

Negative rates inspire jitters

by Sara Sjolin
Market Watch

BERLIN (MarketWatch)—Negative interest rates, ultracheap loans and aggressive quantitative easing—central banks are doing everything they can to prevent another financial crisis, but their unconventional measures are instead creating a massive risk to the global economy, top money managers say.

Gathering for the international FundForum in Berlin this week, more than 1,300 fund managers spent three days discussing the current investment outlook and the central banks’ monetary “experiment” emerged as a major concern for the industry.

“I think it’s fair to say it is an experiment because it hasn’t been done at this magnitude of negative interest rates. So many sovereigns have negative interest rates,” said Alexander Ineichen, founder of Ineichen Research and Management.

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