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Pension funds beware: Gilt borrowing may bite you

Trustees should take care to ensure that they understand the risks and have robust risk management processes in place

Of all the investment clichés, “avoid being a forced seller” is perhaps the closest to being universally accepted.

With interest rate rises in prospect in the US and UK, pension funds holding gilts may be in more imminent danger of breaking that rule than they realise. Trustees should make sure they understand the risks.

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