Aberdeen buys gilts on overdone UK fears

Aberdeen has been buying into gilts over the past two weeks on optimism the UK will keep its AAA credit rating and sterling will hold firm.

Mike Turner, Aberdeen's head of strategy, says the group raised funds for the gilt purchases by selling some stocks across a range of markets, Bloomberg reports. Turner says there is a 55% chance the UK will keep its credit rating. He also believes concerns over the pound have been overdone. "Our decision to buy gilts is because we think we will get a worse performance in stocks," Turner says. "We are not suggesting that things are turning round now, but I am pretty sure we are getting most of the bad news priced in. "When gilts get above 4% we tend to think they are more attrac...