Managers warn gilt buyers may vanish in run-up to Scottish independence vote

Overseas investors may abandon gilts in the run-up to the vote on Scottish independence, with volatility likely to jump as uncertainty increases.

Gilt buyers and fund managers have said they are increasingly expecting market volatility in the run up to the September vote, and have even been calling on the Debt Management Office (DMO) – which issues the gilts – to bring forward auctions scheduled for later this year. Investment Week understands the latest meeting between gilt market makers and the DMO two weeks ago saw a number of gilt buyers calling for the July-September auction to be held prior to September, in order to avoid the referendum on Scottish independence. The DMO is said to have been receptive to the argument. R...