Craig Inches, head of rates and cash at Royal London Asset Management, called simultaneous sales of pension fund and BoE gilt holdings "a key concern" for Britain's debt management agency.
"Historically UK defined benefit pension schemes have been one of the material buyers of long-dated UK government bonds. We're seeing their appetite has materially diminished versus years gone by," said Owen Davies, LDI solutions manager at Schroders, citing anticipation of transfers to insurers as a key reason.
Maintaining its diversified investor base will continue to ensure a reduction in demand from one sector doesn't inhibit funding ability and market liquidity, the spokesperson added.Helped by the pension fund demand of past years, Britain's average debt life is around 15 years, more than double the U.S. and Germany's.
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Source: Reuters - 🏆 2. / 97 Read more »