The National Association of Pension Funds (NAPF) has backed the UK government's strategy to issue more long-dated, indexed-linked gilts and has called for a range of distribution methods to be available to help meet pension funds needs.
The NAPF said issuing more long-dated gilts would achieve three objectives. It said the government would obtain access to funding at low rates of interest - lower than those available at shorter durations. At the same time, it said institutions such as pension funds and insurance companies would benefit from greater availability of a strategic asset and reduced pressure on their balance sheets. In addition, the NAPF believed companies would have greater access to debt finance at short and medium durations with less "crowding out" by government borrowing. Its response to the Debt Man...
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