NAPF calls for more long-dated gilts

Companies, pension funds and the Exchequer itself would all benefit from a new issuance of index-linked and fixed rate gilts, the NAPF says. In a letter to the Chancellor, NAPF says long-term gilts would give Government significant funding at relatively low rates of interest compared to short-term debt. It believes this will prove particularly beneficial at a time when the Government is hoping to borrow more to spend its way out of a recession. In addition, pension funds and insurance companies will have greater access to a strategic, low-risk asset, helping to reduce pressure on thei...