gilt yields

The majority of financial directors and senior leaders say scheme deficits are hampering their business investments, research shows.

Schemes should turn to inflation-linked assets such as long-lease property and mature infrastructure to cope with an insufficient supply of index-linked gilts, say consultants.

The Universities Superannuation Scheme has announced its deficit has increased from £2.9bn to £9.8bn over the past year due to historically low gilt yields.

Rising equity markets coupled with a small increase in gilt yields helped scheme deficits improve by £2.7bn over August, according to the PPF 7800 index.

The government should resist calls to allow schemes to smooth gilt yields when calculating discount rates for valuing future liabilities says Punter Southall.

The overwhelming majority of the industry believes The Pensions Regulator should provide greater flexibility on how scheme liabilities are calculated according to research from SEI.

Last week the yield on UK gilts dropped below US treasuries as the Bank of England's quantitative easing programme continued to impact the market.

Schemes can expect to see a sharp increase in their Pension Protection Fund levies next year because of continuing low gilt yields, warns a consultant.

M&G's Richard Woolnough said the possibility of another £375bn in asset purchases by the Bank of England means gilt yields could remain at record lows for years to come.

A "perfect storm of de-risking" could lead to widening pension deficits that will dwarf bond markets, warns the Society of Pension Consultants.