Standard Life Favors Linkers on BOE Efforts to Contain Brexit
- Company also favors U.S. long-dated inflation bonds on Fed
- U.K. index-linked bonds have outpeformed peers this year
Investors Boost Bets BOE Will Cut Rates
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One of the best ways to cope with the economic risks engulfing the U.K. after its Brexit vote may be to buy protection from an acceleration in inflation.
That’s according to Standard Life Investments, Scotland’s second-largest money manager, which says it favors longer-dated U.K. index-linked bonds because potential monetary and fiscal stimulus to counter risk of a deep slump after the vote to leave the European Union will eventually boost inflation.