Bond funds seek to recoup B&B losses

Aegon Asset Management and L&G Investment Management tackle Treasury over missed coupon payments

Fund groups have entered discussions with the Government to potentially recoup losses incurred by missed coupons on Bradford & Bingley bonds. Aegon Asset Management has confirmed it is in talks with the Treasury as it faces losses on deferred payments on three B&B subordinated bonds, while Legal & General Investment Management has asked for a ruling on whether B&B suffered a "Bankruptcy Credit Event". Last month, B&B said it would skip interest payments in £325m of bonds, in a move expected by many managers following the Government's February law, which changed its subordinated bond ter...