Institutional investors to gain from 50-year bonds

Retail investors will feel little benefit from the 50-year bonds currently being proposed by the Gov...

Retail investors will feel little benefit from the 50-year bonds currently being proposed by the Government, says Jeremy Toner, manager of the Investec Global Bond fund. "We expect the 50-year bonds issued by the French government and under consideration by the UK and German governments to be a sideshow for most investors," he says. Toner believes the main beneficiaries of the new bonds will be institutional investors. The limited value of the bonds has not halted interest in the asset class in the view of Denis Gould, head of UK fixed income at Axa Investment Managers. "Interest in is...