I just read the article below, and am surprised that pension funds take (or are allowed to take) leveraged positions. If the positions are for hedging, then should they not have the full cash to take delivery? Your views would be invaluable.
An interesting chart is attached. The extent of loss on a 40-year UKT issued last year!
It's been a long time since I first started listening to your amazing Daily Commentary. Now it is mandatory for me to hear your comments so that I can put whatever else I hear elsewhere into perspective.
Thank you for your valuable service, and I hope that your readers will have your guiding words for many decades to come.
Thank you for this informative email and the chart of the 40-year Gilt. The fact I received this same chart from several sources today is an indication of how momentous it is for a developed country long-dated bond to trade at 20p on the pound. Last year was a great time to issue a 40-year bond so kudos to the Treasury department. The measures announced by the Bank of England to backstop the market were necessary but come at a significant cost.Click HERE to subscribe to Fuller Treacy Money Back to top