‘Markets Are Wrong’: $2 Trillion of Pension Funds Skip Bond Rout
- Australia’s massive pension funds wager against debt markets
- Managers say technology will continue to damp inflation growth
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As interest-rate jitters supercharged a meltdown in the world’s biggest bond market, Sam Sicilia barely blinked.
“The markets are wrong” about inflation expectations, said Sicilia, chief investment officer of the A$56 billion ($43 billion) Host-Plus Pty pension fund in Melbourne. “Deflationary forces are bigger. Interest rates are going to stay at effectively zero.”