Consumers give fillip to index-linked gilts sector

The continued strength of the global consumer and record low levels of inventories mean there are op...

The continued strength of the global consumer and record low levels of inventories mean there are opportunities to be found in index-linked bonds. Mark Capleton, head of inflation-linked bond research at Barclays Capital, says: 'There has been a coming of age in the global index-linked gilts recently. Every markets' break-even inflation rate is at least 2%. Apart from anything else this justifies the commitment to the product from government issuers.' The UK is leading the way, Capleton says, and it is taking on the profile of a maturing sector, signalling a move away from systema...