Bonds

Pension deficits increased more than 50% last year, but widening spreads between corporate bonds and gilts have masked an even greater deterioration in funding positions, argues Hymans Robertson.

The yield on gilts tumbled near to record lows this morning as investors piled into any sovereigns which have retained their AAA-status after widespread EU downgrades.

Nearly three-quarters of investment professionals believe government bonds are overvalued, research from CFA UK reveals.

Scheme bond allocations will hit 70% within five years as investors seek a "safe path" away from equity volatility to more stable assets, JLT Pension Capital Strategies predicts.

Consultants have raised questions about pension liability calculations, after bond market jitters drove liabilities to historic highs.

GLOBAL - Opportunities are opening up for institutional investors looking to invest in green bonds as a new certification scheme is due to launch next month, and State Street brings a new green bond fund to market today.

EUROPE - Northill Capital has launched a new European credit asset management company, Goldbridge Capital Partners.

Pension deficits have dropped to just over £300bn as a fall in the price inflation outlook shaved £50bn off scheme liabilities in a month, according to Xafinity.

The £1.5bn Dorset County Pension Fund has appointed JLT Investment Consulting to help it select a new bond manager.

Any gains schemes might have made following the switch to the Consumer Prices Index have been wiped out by falling interest rates, JLT Benefit Solutions believes.