Pensions - Articles - Brexit for pension schemes


Rob Price, Fixed Income Portfolio Manager at AXA Investment Managers comments on Brexit day and pensions

 “The shadow of Brexit will fall again later in the year, but for now UK credit spreads offer a favourable window of opportunity.

 UK credit spreads in favourable environment in first half of the year as the near term runway appears clear for risk while uncertainty may increase as we approach the end of the Brexit transition period, at which point we expect the uncertainty around the future UK-Europe relationship to weigh on business investment.

 Risks may resurface towards the second half of the year if an FTA does not appear likely, even in a skeleton form, bringing back the spectre of a ‘Hard Brexit’ outcome in Jan 2021. In that case a degree of spread widening is almost certain, partly driven mechanically by the decline in Gilt yields.
 
 Ultimately, further accommodation by the BoE and ongoing high demand for sterling fixed income products from cashflow focused schemes, should cap if not reverse such a spread widening.”

Back to Index


Similar News to this Story

Launch of the new Pensions Commission
Standard Life, Aegon, Aviva, Legal and General and PMI comment on the launch of the new Pensions Commission
Retirement confidence dips for 50 somethings
New research from Aegon reveals that only 33% of Britons aged 50–59 feel confident about retiring comfortably, the lowest of any age group. This midli
Pension Commission must deliver bold reforms
Comments from Kirsty Anderson, retirement specialist at Quilter on the DWP’s plan to revive the Pension Commission, including auto-enrolment reform an

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.