M&G's Leaviss on recent gilt turmoil, 'pushmi-pullyu' policies and where now for bond investors

Unprecedented moves

Katrina Lloyd, editor-in-chief of Investment Week, spoke to Jim Leaviss, CIO Public Fixed Income at M&G Investments, on 18 October about recent “unprecedented” moves in the gilt market over the past few weeks since the Mini Budget and what needs to happen now to restore longer-term stability and credibility.

They also discussed the difficult decisions ahead for central banks and governments, with Leaviss noting any clues around core inflation figures will be a big driver of markets globally, as it will be very difficult for the Federal Reserve to stop hiking rates until these levels start to fall. In particular, he highlighted tensions between government and central bank policies, which are now moving ‘pushmi-pullyu' style in opposite directions, creating a very different monetary and fiscal policy playing field. Leaviss also discussed opportunities for investors, saying although the bad ...