Pension schemes and gilts: A debt-funded relationship

Taha Lokhandwala looks at what the Debt Management Office plans for government bonds

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In corporate finance terms, the yield on government debt is generally known as the risk-free rate with defaults on repayment seen as the most unlikely of unlikely outcomes.

With long-term repayments and the option to link with inflation, it comes as no surprise of the long-standing relationship pensions have held with government debt. Managed by the Debt Management...

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