Snowden: Gilts, not bunds, are the real safe haven

Kames Capital's bond fund manager Stephen Snowden said the ongoing crisis in Europe has left gilts looking much more secure than bunds in the medium term.

Snowden, who runs a number of top performing bond funds, said in the medium term Germany will have to take its share of the pain caused by the crisis in Europe, which will cause yields on its debt to climb. "In the medium term there has to be burden sharing in Europe, and Germany has to play its part in that," he said. Snowden said as bund yields rise, it will leave the UK looking more and more like one of the few real safe havens. "For me it all reaffirms gilts' status as a safe haven." His comments came ahead of a shock climb in bunds seen today, with yields jumping above 2% f...