All Gilts articles
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White papersCapturing the European Risk Premia Dislocation
When the facts change, we change our minds. The ‘liberation day’ sell-off increased the value proposition of non-U.S. markets, particularly in Europe and Asia. This is no longer the case.
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White papersUK long-dated yields at 25-year highs
Yields on long-term government bonds in developed markets have been rising this year. In the UK, 30-year gilt yields reached their highest level since 1998, driven by inflation worries and concerns over government debt — though the UK’s debt-to-GDP ratio remains below that of some large European countries. Structural changes, such as fewer pension scheme buyers, add further complexity.
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White papersLDI differentiator: the benefits of an integrated solution with credit
This mini-series of short articles shines a light on often under-discussed but important factors to think about when structuring your LDI portfolio framework. Here we look at the benefits of an integrated solution of LDI and credit.
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VideoTalking Markets - The Case for Coco’s, May 2025
In this edition of Talking Markets, Head of Fixed Income, Lloyd Harris highlights how contingent capital is fairing in the current environment, discussing the correlation to other asset classes and the fundamentals of banks and insurers in these uncertain times.
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VideoTalking Markets – Fixed Income update, May 2025
How has the bond market reacted to tariffs? In this edition of Talking Markets, Lloyd Harris, Head of Fixed Income at Premier Miton, discusses deglobalisation, inflation, bond issuance, and what this all means for fixed income investors.
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White papersA Choppy Start to a Year of Uncertainties
The first two weeks of 2025 perfectly illustrate why we see a wide dispersion of potential outcomes for the year, and advocate staying nimble and diversified.
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White papersFixed Income Outlook – Come what may
Once gain the US bond market will lead global fixed income markets in 2025, with a strong US economy but uncertainty over the new administration’s policies setting the tone. We expect the US economy, over time, to pivot towards structurally slower growth and stickier core inflation. This more ‘stagflationary’ trajectory may result in the Federal Reserve taking a more cautious approach towards further rate cuts.
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White papersOpening Bell 2025: Will US equities continue to lead the way?
More questions than answers, but US economy’s strength is reassuring.
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White papersLDI market trends – getting things in perspective
The two key barometers of market levels for LDI are long-term interest rates and long-term inflation expectations.
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White papersMaking sense of corporate bond spreads
Pension scheme funding ratios have improved significantly, due to a rise in yields since the start of 2022, and continued growth asset performance. This has resulted in many taking the next steps towards their chosen endgame by topping up liability hedge ratios and simultaneously increasing allocations to corporate bonds.
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White papersDo elections really matter to investors?
Investors seek to track the evolution of the economic fundamentals that serve to anchor asset returns over a long-term time horizon. We look at what they are.
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White papersEndgame – the benefits of ‘buy and maintain’ credit
Due to higher gilt yields, many defined benefit pension schemes are now in a stronger funding position than they were a few years ago. To secure this improved status, schemes are looking to reduce investment risk by decreasing equity holdings and focusing on assets that will more likely provide the necessary cashflows to pay pensions.
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White papersNo winners in the Thames Water travails
Whatever angle you look at things from the prospects for future investment in the UK water sector don’t look good, for anyone. The travails of Thames Water especially (but other water companies are not exempt) have wrought such damage to the sector’s reputation that water, once a byword for the essence of life, is now more commonly aligned in headlines with words including risk, sewage and pollution.
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White papersA fine time to lock in higher bond yields
Thinking about duration in investment grade credit hasn’t been top of clients’ minds in recent years – with good reason. Bond yields have been exceptionally low, with the Sterling five-year corporate bond yield falling from around 4% in the middle of the previous decade to almost 1.5% by the end of 2020.
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White papersThe snap election could put QE losses back in focus
Back in 2021, when the Bank of England (BoE) announced the end of quantitative easing (QE) and the beginning of quantitative tightening (QT), few commentators understood how out of kilter the Bank’s balance sheet had become compared to central bank norms. The result has been losses on the BoE bond portfolios that dwarf those of other central banks.
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White papersUK outlook brightens as rate cuts loom
The Bank of England held rates at 5.25% this week, but its accompanying statement made clear that, given the broader outlook for inflation, the prospect of rate cuts this summer has increased.
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White papersInvestors Cannot Ignore the Debt-Sustainability Question
Despite a pullback in bond yields, clients at our Solving for 2024 event were still uncertain about how to invest in a world of runaway government debt.
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White papersUp then (marginally) down again
Markets rose earlier in the week on hopes of an interest rate freeze from the world’s central banks; only to reverse course on the back of less dovish outlooks from the US Federal Reserve and the Bank of England.
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PodcastThe Investment Podcast: Dissecting the fallout from the gilt crisis
Just over a year has passed since the gilt market turmoil of September 2022, sparked by the UK government’s so-called ‘mini-budget’. The fallout from the crisis, as the pound fell and gilt yields spiked, prompted an emergency intervention by the Bank of England to restore orderly market conditions against a global backdrop of high inflation and rising interest rates. A significant change in asset class demand dynamics ensued as pension funds sought to meet collateral calls for their LDI mandates.
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White papersStubbornly high inflation sends bond yields higher
UK inflation fell by less than forecast in April, Wednesday’s data revealed, prompting expectations of further interest rate hikes, and pushing bond yields to their highest levels since October.
