Royal London favours credit over gilts

life office's fixed interest team veers away from long duration gilts believing current interest rates are undermining the asset class

Royal London's fixed interest team is focusing on the credit market and steering away from gilts within its pooled and segregated pension mandates. Eric Holt, head of credit at Royal London Asset Management, said credit is preferred over gilts within most pension funds at the moment. "The current interest rate environment has undermined the long end of the gilt market. There is still a premium in yields for the longer stocks and this is not a price that we are too enthused about," he said. Although Royal London tends to focus on specific asset class mandates, most of which are fixed ...