Cordery warns of tech-style collapse in gilt market

The gilt market is becoming like the tech sector in 2000 as investors pile into UK government debt, warned Schroders' Adam Cordery.

Although it is yielding half the rate of inflation, investors have flocked to the asset class amid the turmoil in markets. Cordery, manager of the £225m Corporate Bond and £306m Monthly High Income funds, is maintaining a short duration stance on gilts and treasuries at a time when several big name strategic bond managers are reversing their plays to move long duration. This decision has already hit performance, and Cordery is resigned to potentially looking “wrong for months”. His Corporate Bond fund was top quartile over three years to 5 August but has dropped to the bottom of th...