Sentences with phrase «gilt yields»
"Gilt yields" refers to the amount of money that the government of a country pays to people who lend it money by buying government bonds. It represents the interest rate or return that investors receive on their investment in these bonds. Full definition
Good news is that 15 year gilt yields increased from 2.17 % to 2.46 % last month, so we should see improved annuity rates in future as yields rise (gilt prices fall).
monevator.com
With gilt yields currently at an all time low, the BSA urges the Government to consider alternative sources of financing, and reduce the NS&I net financing target for 2012/13 to zero in line with the 2010/11 target.
These include, amongst other factors, falling gilt yields, which have driven up transfer values.
However, annuity rates rise and fall over time due to changes in gilt yields, inflation and the dark magic longevity risk calculations that actuaries do to create their actuarial tables.
That may well mean lower returns if gilt yields continue downwards, but it offsets the increased duration of my equities, as discussed in the article.
But the Pensions Regulator had reacted to this by insisting that trustees could not make any allowances for the unprecedented low gilt yields, for example, which made a bad situation worse.
At the moment, gilts yield about 2 %... so your range doubles to about 25 - 50 years.
Increased longevity, poor investment returns and particularly the steep decline in UK gilt yields (greatly increasing pension liabilities) have all contributed to this.
Mr Jackson: The hon. Lady will know that the markets have recognised that the fiscal consolidation that the Government had to put in place as part of a policy of growth in the private sector and consolidation in the public sector has resulted in a lessening of the pressures in the gilt markets, with gilt yields down to 3.53 % since May last year, and every 1 % is # 1 billion of interest payment.
He found that market volatility, falling gilt yields and historically low interest rates are focusing minds on funding deficits, de-risking strategies and liability management in the area of defined benefits pensions.
Gilt yields could rally 30 - 35 basis points to all - time lows, but inflation could ultimately rise because of the weaker British currency.
I believe the annuity rates are determined by 15 year gilt yields.
I read the yield curve this morning, just as he did, and it is clear that 10 - year gilts yields are low at the moment.
Nothing changed for the UK — gilt yields are still low.