Some doubt
Article Abstract:
Yields for United Kingdom government securities (gilts) have dropped in Sep 1997 to levels previously seen in Feb 1994. This fall could be related to a view that UK interest rates are unlikely to rise further, and could even drop since base rates are above gilt yields. The UK economy looks set to slow in 1998 but it is unclear whether this is enough to justify low gilt yields in 1997. There could be presssures from the UK or from abroad which may push up gilt yields.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Strips will leave small investors feeling cold
Article Abstract:
The United Kingdom government securities (gilts) strips market could help small investors but tax treatment of strips could be a problem to these investors. Stripping involves a separation of redemption payments and interest and one gilt with a 10-year life can be split into 21 bonds with 20 coupon payments and the ultimate redemption. Income tax may have to be paid annually on strips though no income has been received and this is likely to deter investors.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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