Gilts suffer £150bn value dent in 2022

Fell 10% in four months to April 30

UK Government bonds have suffered their biggest fall in value since the 1980s according to digital asset manager Collidr, as £150bn was wiped off the asset class in the four months to 30 April 2022.

Gilts, which fell by 10% over the period, underperformed shares as the FTSE World Equity index dropped 6% and proved to be the more volatile investment choice, with drawdowns of 11.3% versus 11% for shares on the FTSE.   Investors holding gilts for stability purposes face major challenges, according to Collidr. CEO Symon Stickney said traditional 60/40 retail portfolios were quickly appearing unfit for purpose, as bond prices became so "overstretched" that they now face increasing vulnerability to rising inflation and interest rates. "There has also been a misconception that bond pric...