Templeton Bond Manager: Japan Easy Money Will Bolster Global Liquidity
Templeton bond fund manager Michael Hasenstab, an influential voice on emerging market debt, said Wednesday that Japan's easy money policy will bolster global liquidity, but he also warned that debt conditions in the Asian country are worrisome.
Hasenstab, who runs the $72 billion Templeton Global Bond Fund for Franklin Resources Inc, said he was concerned that the Bank of Japan is on course for "excessively easy monetary policy." He added that any investors are worried about debt levels of the United States "should be petrified about the debt conditions of Japan."
Hasenstab made his remarks in Chicago at Morningstar Inc's annual investment conference, where he was a keynote speaker.
Hasenstab said Bank of Japan's easy money policy will bolster the liquidity of global bond markets. That could be a benefit for debt issued by emerging market countries because it will make their bonds easier to trade.
Hasenstab's fund has an emerging markets tilt and he is known for making contrarian bets on the bonds issued by Ukraine, Ireland and Hungary.
(Reporting By Tim McLaughlin; Editing by David Gregorio)