2008-12-01bloomberg.com

Hugh Hendry, who oversees about $500 million as co-founder of Eclectica Asset Management in London, said he’s buying World War I debt on the bet the U.K. is due for its worst round of deflation since the Great Depression.

The gilts, known as perpetuals because they have no maturity date, have a coupon of 3.5 percent compared with the U.K.’s 4.5 percent inflation rate. Investors hold about 1.9 billion pounds ($2.9 billion) of the securities that still pay interest 90 years after the end of the Great War, according to the U.K.’s Debt Management Office.


Lijit Search

Comments: Be the first to add a comment

add a comment | go to forum thread