UK fixed interest managers predict gilt recession

Almost a year after the start of the credit crunch, Standard & Poor’s has uncovered a wide divergence of views on the UK economic outlook as part of its annual review of the sector, after interviewing 39 UK fixed interest fund managers. Kate Hollis, lead analyst at S&P Fund Services, says: “In gilts, the managers agree that the UK economy is likely to slip into recession but are watching to see if the rise in food and energy prices will feed through into inflation nevertheless.” PIMCO believes Western central banks have hiked rates too aggressively making recession inevitable while Gol...