Why you will not lose money in gilts, bunds or treasuries in 2012

Investors can continue to buy 10-year debt issued by safe haven governments in 2012, with the risk of losing vast sums diminished, said Kames Capital's David Roberts.

Roberts, co-head of fixed income at the asset manager, said with interest rates pegged where they are for the foreseeable future, and yield curves steepening at the long end to make up for inflation, there is little reason why investors should sell at current levels. "I do not think there is a danger of losing lots of money in gilts, bunds or treasuries this year," he said. "Short-dated rates are well anchored (as highlighted in the latest FOMC minutes) and curves are almost steep enough to compensate for future inflation." Yields on gilts, treasuries and bunds all tumbled last yea...