Protection… what protection?: UK government gilts

Bear market for gilts

clock • 3 min read

Intuitively, clients think that holding the debt of governments is a secure and dependable way to protect your hard-earned assets.

It is the government's debt after all. Indeed, historically UK government bonds - gilts - have often been considered as the provider of protection for portfolios in times of stress. In a normal operating environment - whatever that is today - market stresses, wars and economic turbulence usually lead to rising gilt prices and gilts acting as a source of protection for an investment portfolio.  In this economic cycle we are seeing the absolute opposite, and that is because the stresses and strains are a result of, amongst other factors, dramatically rising inflation, rising interest rates...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Deep Dive: Tight credit spreads on US corporates heightens domestic volatility risk

Deep Dive: Tight credit spreads on US corporates heightens domestic volatility risk

Role remains in adding duration

Eve Maddock-Jones
clock 24 May 2024 • 3 min read
abrdn relaunches two fixed income portfolios as part of ongoing consolidation

abrdn relaunches two fixed income portfolios as part of ongoing consolidation

Gives ii investors exclusive access to new fund

Eve Maddock-Jones
clock 15 May 2024 • 4 min read
UBS makes AT1 bonds worth $5bn available for equity conversion

UBS makes AT1 bonds worth $5bn available for equity conversion

Four outstanding AT1 issuances

Valeria Martinez
clock 14 May 2024 • 1 min read
Trustpilot