Gilt safe haven status at risk if cross-party Brexit talks fail, says portfolio manager

Brexit cracked adobe stock AS 230x150
By Frank Jackman
15 May 2019

UK government bonds could lose some of their stature as a risk-free investment and start to be treated more like credit products in the event that no breakthrough is made in Brexit negotiations, according to one portfolio manager.

Sterling-only investors have no choice but to use Gilts as their so-called risk-free asset, said the portfolio manager. The UK 10-year Gilt was trading with a yield of 1.066% on Wednesday morning.

“Thankfully, [Gilts] have shown exactly the characteristics expected from risk-off products and have shown predictable negative ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial