Winterflood Securities, a Retail Gilt Edged Market Maker (GEMM) since 1984 is a market participant authorised by the UK Debt Management Office (DMO) to support liquidity in the Gilt Market to retail and the wealth management community. Winterflood also seeks to offer investor information and market insights to the broader narrative, of investor inclusion in Fixed Income Products.
This week in the Press:
Stacey Parsons, Head of Fixed Income Strategy at Winterflood has talked about the increased interest in GILTs in the Financial Times this week:
Retail investors snap up gilts as yields surge ahead of UK savings rates
Financial Times, Saturday 24th June 2023
Retail investors have rushed to snap up UK government debt this year as yields have shot up and many bank deposit rates have failed to keep up. The dash to buy gilts comes as the Bank of England has embarked on its most aggressive rate raising for a generation, surprising the market by lifting its base rate to 5 per cent this week, its highest level since 2008, while short-dated bond yields have risen even higher as markets price in several more rate rises.
How to join gilts buyers as yields grow
Financial Times, Saturday 24th June 2023
Private investors have been buying government bonds in record volumes in recent months as juicy yields and a favourable tax treatment provide much more attractive returns than many savings accounts. Still, the overall numbers are low compared with demand for standard savings products. Gilts are more complex than savings accounts, and if you sell one before its maturity date, you could lose money if the price of the bond has fallen.
FCA Non Equity Engagement Paper – A must read for all Execution Only and Wealth Managers.
Time to open up UK bond markets and give investors more options
The FCA has published an Engagement Paper on Non-Equity Securities that looks at how the listed market can facilitate broader access to listed companies debt (Bonds).
Never has this been more important since the recent resurgence in the asset class of ‘fixed income’, as investors seek to create portfolio’s inclusive of Bonds and Gilts, capitalising on higher yields and the tax-exemptions available from trading these listed asset classes.
If you would like to discuss any of the topics above in more detail, please feel free to contact: either
Stacey Parsons; Head of Fixed Income Strategy.
Stacey.Parsons@Winterflood.com
Will Boddy; Head of Fixed Income Trading
Mike Smith; Debt Capital Markets
Winterflood Securities Ltd is authorised and regulated by the Financial Conduct Authority
