This Friday blockbuster from Daire MacFadden and Ian Smith in London, dominates the digital front page of the FT. We in pensions know why we don’t need so many long term gilts. It’s partly that the liabilities of DB schemes decrease as they are shipped out to Bermuda via UK insurers fronting the activities of American insurers owned by American private equity houses. They don’t want Government bonds, they want more profitable bonds (for them) – corporate bonds. So gilts are being sold off prior to buy-in/out.
It’s partly too that our retirement in future will be financed from pots not pensions , so long as DC savings plans continue to hold out against CDC. CDC and DC aren’t buyers of long term gilts which leaves a few open DB funded schemes and not many pension schemes
If you want to read the article and have got this far on mine, here is a free share – it is a Friday and a holiday for many of my readers. If this link has run out, email henry@agewage.com.
If you want to read the highlights of the article – keep reading here.
