Index-linked gilts to stay the odd man out
Article Abstract:
United Kingdom index-linked government securities (linkers) are attractive according to some fund managers, because long-dated linkers' yields ahve risen to more than yields for equities. This has tended to be a good signal to move from equities into linkers. There is a debate as to whether past trends can be extrapolated in this case. The notion that equities should yield more than linkers could be a local peculiarity which is no longer relevant. Risks from stocks and inflation could have fallen and this could mean that returns do not have to be so high for equities.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
A shock in store
Article Abstract:
The United Kingdom equity market is likely to be affected by long bonds, argues Richard Jeffrey from Charterhouse Tilney. Yields for UK government securities (gilts) could remain stable which would help stock prices, but stability for gilt yields appears unlikely. Speculation about European monetary union (Emu) has affected gilt yields, but the UK is not likely to join Emu due differences in the business cycles of the UK and mainland Europe.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The jurisdiction that likes to say no. Donate your unwanted shares. What banks can do for charities
- Abstracts: Investing in the future: what can CAs do about the stress in their careers? Fourth year of university for future CAs in Quebec
- Abstracts: Insurance mergers are on the cards. Choosing a direction. Life insurers in the doldrums
- Abstracts: Pipelines in the Caspian. Oil companies: big savings for Shell. Shell seeks to avoid Nigeria U-turn
- Abstracts: India: disillusionment. India: going up. Rueful reflections on the Indian rope-trick