LONDON – UK DMO Chief Robert Stheeman said that the average
maturity of its portfolio has increased from 10.6 years to 13.4 years
since 2000, adding that the Gilt market is now more developed than ten
years ago.
In comments at a Euromoney conference here, Stheeman said that the
“high average Gilt maturity is seen as a strength,” adding that the debt
agency’s gilt portfolio has expanded from stg284bln to stg910bln since
2000.
Stheeman also noted that there has been a consistent increase in
long-dated Gilts, with issuance in this sector increasing to 50% vs
40% ten years ago.
The debt chief added that the reliance on Gilt Edged Market Makers
(GEMMS) remains the cornerstone of DMO policy but said that its investor
base had become more diversified.
Overseas investors held a record stg243.6bln in Gilts at the end
of March, Stheeman confirmed.
Stheeman added that the Gilt market is now more liquid and healthy
and – despite the recent turmoil – has functioned smoothly. The debt
chief also confirmed that approximately stg90bln worth of gilts has been
sold so far in 2010.
–London newsroom: 44 20 7862 7492; email: wwilkes@marketnews.com;
nshamim@marketnews.com
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