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UK gilts: '93 revisited

Article Abstract:

UK government securities (gilts) have performed well in 1995, and there is concern that history could repeat itself with disappointments in 1994 as happened in 1994 following a good year in 1993. Looser monetary policy could make gilts seem more attractive. Low inflation and low growth are not taken for granted in the US, as is shown by the reaction of bond markets to inflation figures for producer prices in the US. There could be problems with gilts in the UK as economic strength become evident.

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Avoiding the burden of gilts

Article Abstract:

UK investors are often attracted by UK government securities (gilts) as a safe investment vehicle. They may seek to buy gilts through a stockbroker, but charges are much lower if they use the National Savings Stock Register, and visit their post office for the forms. Gilt unit trusts are an expensive way of investing in gilts. Gilts can be sold on the stock market, so they undergo changes in their price, and this means that investors can lose money through this type of investment.

Analysis, Personal finance

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Gilts: repo revolution

Article Abstract:

The market for UK government securities (gilts) is being modernized with the establishment of an open market in selling and repurchasing (repo) deals. The change is not likely to have a direct effect on private investors, but could bring a number of benefits such as drawing in foreign investors, boosting liquidity, and cutting the cost of borrowing by the government. There could also be a change in how monetary policy is implemented by the Bank of England.

Financial markets

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