UK - The Debt Management Office (DMO) has announced the issuance of a further £675m nominal of 50-year index-linked treasury gilts expiring 2055.
The new gilts will be auctioned on 25 October and the settlement of the auction, done on a uniform price basis, will be issued the following day. This further issue will be interchangeable with the gilt already in issue.
The announcement follows the DMO’s decision in September to issue the world’s first 50-year inflation-linked bonds in response to demand for long dated assets as a liability matching tool.
The gilt itself will be repayable on 22 November 2055 and payment will be related to the movement during the life of the gilt of the United Kingdom General Index of Retail Prices.
This week's edition of Professional Pensions is out now.
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Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.