{"id":66122,"date":"2022-12-30T11:14:39","date_gmt":"2022-12-30T11:14:39","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=66122"},"modified":"2022-12-30T11:14:52","modified_gmt":"2022-12-30T11:14:52","slug":"pension-funds-want-bonds-so-why-wont-the-government-supply-them","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2022\/12\/30\/pension-funds-want-bonds-so-why-wont-the-government-supply-them\/","title":{"rendered":"Pension funds want bonds so why won’t the government supply them?"},"content":{"rendered":"

I keep being told by right-wing trolls that I am wrong to suggest the merits of investing in bonds and that no long-term investor would do so. This most recently happened today in response to the repost of my arguments<\/a> for a new left-wing economic narrative, which focuses on the use of bonds.<\/p>\n

Those trolls are wrong. This is data from the FT in December<\/a> based on data from the Pension Protection Fund that shows there has been a long-term and decided shift in defined benefit investing away from equity towards bonds:<\/p>\n

\"\"<\/p>\n

The evidence is very clear: around 70% of these funds are invested in bonds.<\/p>\n

You could, of course, argue that these funds are working their way out and have a preponderance of older and even retired members, but that's by no means wholly true so the shift cannot be explained by that alone.<\/p>\n

My suggestion is that the shift is more fundamental: equities are not delivering value when the scale of the asset stripping to fund dividends<\/a> in many companies is taken into account - as one day it will have to be. Professional investors know that and are wisely avoiding the sector.<\/p>\n

But what that means is we need more bonds. So why won't government deliver them? That is the real question that needs an answer at this moment.<\/p>\n","protected":false},"excerpt":{"rendered":"

I keep being told by right-wing trolls that I am wrong to suggest the merits of investing in bonds and that no long-term investor would
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