Fears grow over gilt market sell-off

Jonathan Stapleton
clock

The lastest round of quantitative easing (QE) has made gilts more expensive and may drive international bond investors to cash in on the asset class, fund managers warns.

Baring Asset Management said it was "increasingly concerned" about the course of economic policy and what it means for gilts. It said the revision of second quarter GDP to 0.1% left insufficient growth to allow the UK to reduce its debt. Barings said the additional round of QE will to make an expensive asset class even more expensive and add to pension fund deficits. International investors, who own over 30% of the stock of outstanding government bonds, may sell their stock to crystallise their profits, Baring said. Baring Asset Management head of fixed income & currency Alan Wi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment General

'Don't panic' — dealing with client emotions in a volatile market

'Don't panic' — dealing with client emotions in a volatile market

Advisers remind financial planning ‘is about the 'longer-term view’

Julia Bahr
clock 03 March 2023 • 6 min read
'Ambiguity and individualism': Advisers on rising investor demand for ESG

'Ambiguity and individualism': Advisers on rising investor demand for ESG

‘Lack of cohesive structure’ 

Julia Bahr
clock 01 September 2022 • 4 min read
Macroeconomic and geopolitical worries fuel advisers' bearish outlook - Schroders

Macroeconomic and geopolitical worries fuel advisers' bearish outlook - Schroders

‘A rapidly changing investment landscape’

Julia Bahr
clock 21 June 2022 • 4 min read