Ultra long-dated UK gilts could provide data to value long-term liabilities
But demand for such long-dated instruments questioned
The issue of ultra long-dated UK gilts could provide additional data to determine the behaviour of interest rates used to value long-term liabilities, experts say. But investors are split on whether there will be enough demand for significantly longer gilts, as proposed by UK chancellor of the exchequer, George Osborne.
A consultation to consider long-term gilts with maturities in excess of 50 years and perpetual gilts was outlined in the UK Debt Management Office’s (DMO) issuance plans
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