UK Bond Trading Is Surging as Wealthy Brits Grab Tax-Free Gilts
- Two-year UK yields at over 5% are the highest since 2008
- Gilts appeal because they’re exempt from capital-gains tax
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Wealthy UK investors are buying up gilts at a frenetic pace to take advantage of tax perks and soaring yields.
There’s been an almost tenfold jump in direct bond trading year-to-date at Interactive Investor Ltd. compared with the same period in 2022, with nearly all the activity concentrated in gilts. It’s a change in strategy for investors, who typically get rates exposure via bond or money-market funds rather than buying the securities directly.