The new issue of an inflation-linked gilt maturing in 2050 a couple of weeks ago reminded me of an excellent three page paper that Larry Summers wrote in the mid 1980s (see here). In short, Summers invented what he called…
Category Archives: gilts
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Long dated UK inflation-linked gilts – possibly the most expensive bonds in the world
- Topics
- gilts, quantitative easing
Posted October 7th, 2009
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Something to keep everyone happy – Bond markets and equity markets outperforming
- Topics
- gilts
Posted September 9th, 2009
The month of August was an investor’s dream, with major asset classes like equities, government bonds, corporate bonds and property producing positive returns over the month. However, like two gunslingers in the American Old West, the equity and government bond…
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It seems the Bank of England has been acting as the Grand Old Duke of York – gilt yields had been marched fairly close to the top of the hill a week or two ago, with 10 year gilt yields…
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Stage 1 of QE over? Now the gilt purchases might start to get traction
- Topics
- gilts, quantitative easing
Posted April 2nd, 2009
It’s still early days in the UK’s QE process, so the 7 data points we have from the gilt buyback programme to date are insufficient to draw too many conclusions from. However, this chart does seem to show that participation…
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Gilts have been going at a rate of knots, thanks to the squall that has been the credit crunch. The benchmark 10 year gilt yield plunged from 5.46% at the end of June 2007 all the way down to 4.51%…
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Pension fund black hole much bigger than previously thought
- Topics
- gilts, pension funds
Posted January 2nd, 2007
A recent report from the Pensions Regulator states that the UK’s pension fund liabilities exceed pension fund assets by £440bn. The calculation is now a little out of date as it was made on March 2006, so given that bond…










