LDI: adapting strategies | Insight Investment

Robert Gall, Head of Market Strategy

Key takeaways:

• The gilt market offers selective value, though relative value shifts sharply by maturity and structure, with issuance tactics helping keep government debt affordable.
• Key risks for gilt investors include refinancing, refixing, inflation exposure and weighted‑average maturity.
• Despite political uncertainty and fiscal challenges, gilts remain the preferred hedging instrument versus swaps or overseas alternatives.