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Pensions Crisis Driving Down Mortgage Rates

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Hundreds of companies running final pension salary schemes are becoming big buyers of long-datend government bonds (gilts) in order to bulk up on assets that more closely match their liabilities, pushing up gilt prices and driving down their yields. As gilt yields aare the benchmarksof interest rate expectations, lower longer term yields are allowing lenders to cut mortgage rates. (rough Barolo swilled copying of part of an article from FT).

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Hundreds of companies running final pension salary schemes are becoming big buyers of long-datend government bonds (gilts) in order to bulk up on assets that more closely match their liabilities, pushing up gilt prices and driving down their yields. As gilt yields aare the benchmarksof interest rate expectations, lower longer term yields are allowing lenders to cut mortgage rates. (rough Barolo swilled copying of part of an article from FT).

Comments pleaseee

Full article from FT here, no need to subscribe

http://firstrung.co.uk/articles.asp?pageid=NEWS&cat=47

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I've blogged a few stories about this maybe a couple of weeks ago in the news window top left of the screen. The first story was from the Evening Standard, more since from the FT. (Where, following the Turner Report and we have to save more for pensions, will the money go?)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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