Michael Wilson, a former Canadian finance minister and ambassador to the U.S., said bond yields have fallen so low they are no longer compensating for risks.

“The fixed-income market itself is a risky market with the level of yields as they are today,” Wilson, 75, chairman of Barclays Capital Canada, said at the Bloomberg Canada Economic Summit in Toronto. “Investors and particularly insurance funds have to be careful as so much of their funds are in yield-based products.”