Iggo questions future of gilts following S&P downgrade

Axa IM's Chris Iggo is questioning the future for UK gilts following Standard & Poor's move to downg...

Axa IM's Chris Iggo is questioning the future for UK gilts following Standard & Poor's move to downgrade the UK's outlook to negative last week. The group's CIO fixed income believes unless there is a clear plan to put public finances on a more stable long-term footing the UK will lose its AAA credit rating, which will fuel demand for index-linked bonds, foreign government debt and corporate bonds. "The sovereign CDS market, which is a measure of the price of buying insurance against sovereign debt deterioration, suggests the UK is a worse credit risk than Spain, Portugal, Sweden, and F...