UK Long Dated versus Undated Gilts
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UK Long Dated versus Undated Gilts
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Last edited by Clive on Mon Jul 04, 2011 6:20 pm, edited 1 time in total.
Re: UK Long Dated versus Undated Gilts
Speaking of which, what are the ETFs in the UK that can be used for long gilts and short gilts?Clive wrote: Just for info :
I downloaded the historic performance of TLT over the 2008 crisis period to note when TLT peaked with the intent to download historic UK undated and long dated Gilt price performance over the same period - just to see whether undated might be held in lieu of long dated.
What I overlooked however, and is a point of interest, is that the individual UK and US PP assets reacted differently during that crisis (overall in the UK the PP was up around 6% in 2008 and was up around 2% in the US).
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In the UK gold was much more up over 2008 than in the US, whilst in the US LT's were much more up in 2008 than UK LT's
A reasonable example of how in different countries different PP assets can carry the losers over a particular period in time.
The other point of note is that from this small test the initial indications are that undated gilts might perhaps work just as well in the PP as long dated gilts.
The only one I know of is IGLT and that's tiered between many of them.