Liontrust's Milburn: Why I think gilts are a 'toxic investment'

Not a 'risk-free' asset

As a fixed income investor based in Brexit-facing Britain, I am often asked to opine on gilts.

Historically considered a safe investment, given they are issued by Her Majesty's government, they are a toxic investment.  You may ask whether I remember the country is about to leave the European Union, and why, under that circumstance, I do not buy the UK's 'risk-free' asset.  Funnily enough, I have not forgotten our forthcoming divorce from the EU - I honestly believe those who think gilts in a post-Brexit world are risk-free are ignoring the lessons of several hundred years of market history. Liontrust's Roberts: Why I remain bearish on gilts despite supportive data We thin...