In his latest blog, M&Gs Richard Woolnough reflects on Mervyn Kings recent proclamations that we may well be less than half-way though this fiscal crisis. The question is: do investors have the patience to sit tight in low-yielding assets for another five years?
Gilts have become increasingly risky this year relative to UK equities, according to new research from FE, indicating a further shift from their perceived safe haven status.
Gilts may have been a good place to be in the three years post-Lehman but it is difficult to see investors getting a boost from them again this year, according to Gary Reynolds, chief investment officer at Courtiers.
Investors in 10-year Gilts could receive negative real yields of between 30% and 40% if the government continues to use them to restructure debt by stealth.
The latest round of QE will see another £75bn used to buy gilts – somebody has to – when corporate bonds is where the money should be directed.
Jupiters Ariel Bezalel is avoiding UK debt in favour of Australian and Canadian sovereign paper.
Chris Iggo looks at the world of deteriorating sovereign debt and asks where still looks attractive.
Invesco has placed Paul Mueller in charge of its Gilt Fund as Jack Loudoun quits the firm.
