There has been a storm in the U.K. government bonds (gilts) market dramatically affecting pension funds and their liability-driven investment (LDI) strategies. This has precipitated a lot of press coverage and many of our U.S. pension clients are asking questions. Andy Hunt, head of Fixed Income Solutions, along with members of the Allspring Pension Solutions team, discuss what happened and why, what it means for the U.S., and what to do next.
With a possible recession on the horizon, many investors are probably looking for investment opportunities that could help provide security in a difficult market environment. U.S. municipal bonds are one possibility. The U.S. seems intent on accelerating infrastructure spending, and if that happens, the market for municipal infrastructure bonds could become even more robust.