That assessment comes from Bank of America-Merrill Lynch Global Research's head of high yield and relative value strategy, who saidFederal Reservechair Janet Yellen and her global central banking counterparts have been reduced to little more than high ranking babysitters.
"A Peter Pan economy is an economy that just doesn't want to grow up," Michael Contopoulos recently told "Fast Money."The central bankers of the U.S., Japan and Europe "are like three nannies managing the economies. And, that's what they're supposed to be doing.
Speaking about the central banks' mandate for price stability, Contopoulos added: "If you think about it, their job is to spur inflation and growth. It's to baby the economies forward. It's just not happening though."
The analysis coming as the ten-year Treasury note yield fell to multi-year lows this week, breaking the 1.60 percent mark. Meanwhile, the Fed decided leave interest rates unchanged.
"I think rates could go lower. You have ten trillion of negative yielding assets globally. Treasuries, U.S. investment grade and U.S. high-yield are virtually some of the only assets available right now with a positive yield," said Contopoulos, who drives the firm's view on cross assets and the high yield and loan markets. "Fundamentals are weak."