Who is *really* to blame for the gilt chaos?
Russell Clark is the former chief investment officer of Horseman Capital, and now the author of the Capital Flows and Asset Markets newsletter, where a version of the below initially ran. We’re a sucker for a good clearinghouse rant, so we asked him if we could cross-publish it here.
I personally do not think LDI investing and pension funds are to blame for the recent gilt market turbulence.
In a world where Japan still has negative interest rates do you really think there not the fund available to buy 30-year gilts at 5 per cent yield? Or even domestic UK institutions that would be happy to look in sizeable capital gains?
This story originally appeared on: Financial Times - Author:Tax Cognition
