Investors leave pension funds to issuance feast

Those investors who are able to sell out of index-linked gilts are taking the opportunity, leaving p...

Those investors who are able to sell out of index-linked gilts are taking the opportunity, leaving pension funds trapped by regulatory pressure to feast on the Government's increased issuance. The Debt Management Office responsible for the issues has been under sustained pressure to increase issuance, according to Quentin Fitzsimmons, manager of the Threadneedle Absolute Return Bond Fund, but has generally been coping well with this. "The Debt Management Office is doing a good job to maintain order and the real issues can only be solved by politicians. Demand either has to be whittled dow...