LaRusse cautious on long term outlook for gilts

ON BONDS

Insight Investment's April LaRusse.....

Government and corporate bonds have performed strongly this year, with gilts enjoying total returns of just over 10% to the end of September, while corporate bonds have enjoyed total returns of over 11% in the same period. One of the factors supporting the market has been its function as a safe harbour from the stormy seas impacting Greece, Ireland and the other southern European states, given the BoE’s freedom and ability to respond to the downturn affecting the UK by cutting interest rates and introducing quantitative easing. But where next for UK fixed income? The UK economy return...