Market fragmentation "inevitable" if CPI-linked gilts issued, says DMO chief
Key question is to what extent fragmentation could affect liquidity of new instrument, says chief executive of the UK’s Debt Management Office
Concern over the fragmentation of the UK inflation-linked bond market remains a key issue for the Debt Management Office (DMO), as it comes to the end of its consultation on whether to issue gilts linked to the consumer price index (CPI).
The consultation follows an announcement by the Department for Work and Pensions last July that CPI should become the statutory minimum for the revaluation and indexation of pension rights for all occupational pension schemes - a move that should, in theory
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