, Columnist
Private Asset Managers Should Beware the Gilt Crisis Aftershocks
UK pension plans sold liquid assets during the gilt market meltdown. Portfolios may now be undesirably skewed to illiquid private holdings.
Still facing aftershocks from the gilt market meltdown.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
There’s a sense the UK gilt crisis is over. Pension plans are no longer scrambling to cut leverage in their government bond portfolios after September’s calamitous budget crashed sterling markets. Yields are back at pre-spike levels.
But as the dust settles, some pension trustees will be facing difficult decisions regarding the weighting of their portfolio to levered gilt strategies versus higher-returning assets such as private credit, real estate, infrastructure and private equity. That should trouble private asset managers.