The National Association of Pension Funds (NAPF) commented on reports today that the Government is considering issuing bonds with a 100-year repayment date.
Joanne Segars, NAPF Chief Executive, said: "Most final salary pension schemes are now closed to new joiners and are becoming more mature. Their liabilities are long-term, but not that long-term. Pension funds are looking for 30-, 40- and 50-year index-linked debt, and would much rather the Government issue more of those. Even if a 100-year bond were attractive in duration, there would be a question mark over whether it would yield a strong enough return for investors."
Press release
© NAPF - National Association of Pension Funds
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