IMA revamps fixed income sectors

The biggest change is the UK Corporate Bond and UK Other Bond sectors will be split in to three new sectors; £ Corporate Bond, £ Strategic Bond and £ High Yield. The Global Bond definition will remain the same. Meanwhile, the UK Gilts and UK Index Linked Gilts sectors will adopt revised definitions to bring convergence with ABI sectors. The IMA also highlighted derivative usage should be within the spirit of the sector restrictions. It says this will be self-policed at the current time although this may change. Sector changes come into effect on 1 September 2008 and firms will have...