Bonds

The government's plans to issue gilts with a maturity greater than 50 years, or even with a never-ending life, have been criticised as little more than a 'gimmick'.

Chancellor George Osborne has confirmed the government will consult on launching perpetual gilts and gilts with a life longer than 50 years, despite a wave of criticism from potential investors.

Guillermo Osses, manager of HSBC's $1bn GEM Debt Total Return fund, has reduced risk in his portfolio, expecting emerging market debt to pull back after a strong start to the year.

100-YEAR GILTS

100 YEARS OF DEBT

The longest losing streak for 10-year US treasuries since 2006, coupled with a marked rise in other ‘safe haven' bond yields, poses some difficult questions for bond investors.

Schroders' corporate bond manager Adam Cordery expects fund managers will typically hold an average 10% in cash in the future, as liquidity in the market dries up.

M&G bond manager Mike Riddell and his team have taken exposure to global index-linked bonds to their highest ever levels in the view inflation risks have not been priced into the market.

BNY Mellon has launched an Emerging Markets Corporate Debt fund to tap into what it sees as the next major structural development in emerging market investing.

THE GREEK 'DEFAULT'