Yesterday Jim blogged that M&G was launching two new innovative corporate bond funds – the M&G UK Inflation Linked Corporate Bond Fund and the M&G European Inflation Linked Corporate Bond Fund. For those that are interested in hearing further details about the funds straight from the horse’s mouth, click here for a short video interview Jim did yesterday with Charlie Parker from Citywire.
Bond Vigilantes
M & G
I didn't win your draw for "When Money Dies", but bought it anyway and found it a very interesting read. It was however a little disconcerting to realise that the draw for the book was part of the pre-marketing of your inflation-linked corporate bond fund. It struck me as quite a jump from today's market environment to a defeated Germany in 1923 and as such had the unpleasant whiff of scare mongering-as I don't think you are suggesting that we are on the precipice of hyperinflation. But if you do think so, I have a couple of questions. Do you really think that an inflation linked rate of interest will protect investors if the currency involved becomes worthless? Do you think you can actually cherry-pick the corporates that will survive a hyperinflation while avoiding the rest. It seems to me that Mr Schacht's solution to hyperinflation was to wipe out all debts and start with a clean slate…..