Vive la Revolution
2017 is a critical year for European politics not to mention the triggering of Article 50 and Trump.
Fixed income investors have benefitted from increased returns as a result of falling interest rates over the past 30 years. This has meant that most bond investors have had their income...
A question that frequently gets asked is ‘why not just use Gilt futures to hedge?’ Investec’s Magnus Burbanks addresses this by outlining some problems that arise using futures (particularly 10yr Gilt futures) to hedge interest rate risk in the context of Impala. Magnus is responsible for the Interest Rates desk at Investec and works in collaboration with the bank’s client-facing operations when executing hedges in the interbank markets.More
The goal of inflation-linked bonds is to ensure that purchasing power is maintained and that a real return, fixed at the beginning of the term, is paid (typically on an annual basis) to the holder of the bonds.
It’s a tricky one to play for Carney as the recent UK data has been stronger, indicating that the economy is recovering...More