The UK gilt and corporate bond markets have staged a strong rally since the end of June, with the FT...
The UK gilt and corporate bond markets have staged a strong rally since the end of June, with the FTSE All Stock Gilt index posting a 7.7% gain and the Merrill Lynch All Stock Investment Grade Credit index rising 9%. Bond markets were already rallying before 11 September, as the global slowdown gathered speed. Post-11 September, the aggressive monetary easing has supported short-dated gilts, while longer-dated maturities have benefited from regulatory changes. Significantly, the introduction of accounting standard FRS 17 has prompted some pension funds to reduce their equity exposure i...
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