Long-dated bonds best value as demand outgrows supply

Long-dated bonds offer the best value in the European sovereign bond market as pension demand grows ...

Long-dated bonds offer the best value in the European sovereign bond market as pension demand grows beyond actual supply. However, the current market is offering little of interest to managers despite continuing interest rate hikes. Jim Leaviss, head of retail fixed income at M&G Asset Management, is looking to long-dated European government bonds as offering the best value. He also highlights that European pension funds face the same problems as their UK counterparts. "It is well known that in the UK pension demand for long-dated bonds has caused a 50-year low in 30-year gilt yields bu...