Pimco chief Bill Gross says credit markets are overheating, but he wouldn’t abandon ship just yet. “On a scale of 1-10 measuring asset price ‘irrationality’, we are probably at a 6 and moving in an upward direction,” Gross writes in his March investment outlook.

He continues: "Corporate credit and high yield bonds are somewhat exuberantly and irrationally priced. Spreads are tight, corporate profit margins are at record peaks with room to fall, and the economy is still fragile."