Strong Retail Demand Boosts Low-Coupon UK Gilts Performance, Morgan Stanley Strategists Analyze
Deep News
Jan 20
Strategists Fabio Bassanini and Luca Salford from Morgan Stanley noted in a report that robust demand from retail investors for low-coupon UK gilts is currently supporting the performance of these bonds. Low-coupon UK gilts refer to UK government bonds that pay a low annual interest but offer capital gains at maturity.
“Retail fund inflows are significant and are concentrated in low-coupon, short-dated UK gilts,” the strategists stated. They anticipate that retail investors are likely to continue reinvesting the proceeds from maturing gilts into low-coupon UK gilts.
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