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

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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.

By Frank Jackman
15 May 2019

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 ...

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