Barbara Saunders

From the blog: Gilts have been a perennial favourite for UK pension schemes, not simply for their liability-matching properties, but also because of the returns they have delivered for schemes in years when markets have wobbled.

However, what was once a classic trade in times of trouble for risk markets now looks less compelling.

The unfortunate truth is that after years of declining yields (and corresponding gains for investors) the market environment has shifted significantly since the last downturn.

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