‘Record demand’ for index-linked Gilts stems from pension duration gap

first_img“However, with circa £400bn of index-linked Gilts in issue versus around £1trn of inflation-linked pension liabilities, the supply and demand imbalance is unlikely to be eased any time soon.”The issuance, which matures in 2058, will grant many institutions the ability to address both duration and maturity gaps in their existing hedging portfolios, according to Barron.“In addition, the significant supply at the syndication has highlighted hedging opportunities for pensions schemes that have flexible LDI mandates in place to take advantage of the current attractive pricing for hedging inflation risk separately to interest rate risk,” she said.“The cost of hedging long-dated inflation risk using either inflation swaps or index-linked Gilts with their interest rate sensitivity removed is at the most attractive level in over a year.”The comparatively low volume of index-linked Gilts, when viewed against pension liabilities, has caused the UK National Association of Pension Funds to warn that it was “creating risks” for pension funds.“There has been increasing frustration from schemes that, to reduce their interest rate and inflation risks, they are effectively ‘forced’ buyers of Gilts with low or negative real yields,” the association said in June. A UK Gilt issuance that attracted £14.5bn (€18.3bn) in offers is proof that pension investors are keen to address their duration mismatches in their hedging profiles, despite falling bond yields.Following the syndication of £5bn in 45-year index-linked Gilts, AXA Investment Managers (AXA IM) said interest, which stood at £14.5bn, proved there was still significant demand for such issuances, despite a negative yield of 5.3 basis points a year.Lucy Barron, senior solutions manager at AXA IM, said the demand clearly stemmed from domestic pension providers wishing to manage liability risk.“Index-linked Gilts continue to be seen as the best match to inflation-linked liabilities,” she said.last_img read more

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‘Dumb and Dumber To’ coming to Wellington Regent; original on Friday; Santa Coming to Town Saturday

first_imgMore information on Dumb and Dumber To:When:  Friday, Saturday and Sunday 7 p.m.Rated: PG-13 Time: 1 hour, 49 minutes Rotten Tomatoes rating (movie critics collective approval ratings): 26%. Audience review: 49% approval.Movies ahead at Regent Theater:Coming soon:Dec. 19 – Big Hero 6.Dec. 25- Penguins of Madagascar.Follow us on Twitter. This week at the Regent Theater: “Dumb and Dumber To.” (Movie trailer is below).Also at Regent this weekend: The original Dumb and Dumber on Friday night at 9:30 p.m.•••••On Saturday and Sunday “Santa Claus is Coming to Town.” Bring your non-perishable food items for admittance which will go to the Wellington Food Bank. Movie Synopsis: Jim Carrey and Jeff Daniels reprise their signature roles as Lloyd and Harry in the sequel to the smash hit that took the physical comedy and kicked it in the nuts: Dumb and Dumber To. The original film’s directors, Peter and Bobby Farrelly, take Lloyd and Harry on a road trip to find a child Harry never knew he had and the responsibility neither should ever, ever be given. The Farrelly brothers produce Dumb and Dumber To alongside Riza Aziz and Joey McFarland of Red Granite Pictures. They are joined by fellow producers Charles B. Wessler and Bradley Thomas. Universal Pictures will distribute the film in the United States, Canada and select international territories.(C) Universal Close Forgot password? Please put in your email: Send me my password! Close message Login This blog post All blog posts Subscribe to this blog post’s comments through… RSS Feed Subscribe via email Subscribe Subscribe to this blog’s comments through… RSS Feed Subscribe via email Subscribe Follow the discussion Comment (1) Logging you in… Close Login to IntenseDebate Or create an account Username or Email: Password: Forgot login? Cancel Login Close WordPress.com Username or Email: Password: Lost your password? Cancel Login Dashboard | Edit profile | Logout Logged in as Admin Options Disable comments for this page Save Settings Sort by: Date Rating Last Activity Loading comments… You are about to flag this comment as being inappropriate. Please explain why you are flagging this comment in the text box below and submit your report. The blog admin will be notified. Thank you for your input. +4 Vote up Vote down Confused · 296 weeks ago “Dumb and Dumber coming to Wellington” Aren’t they already on the city council? Or was that the School Board? 🙂 Report Reply 0 replies · active 296 weeks ago Post a new comment Enter text right here! Comment as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Submit Comment Subscribe to None Replies All new comments Comments by IntenseDebate Enter text right here! Reply as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Cancel Submit Comment Subscribe to None Replies All new commentslast_img read more

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