The UK government's plan to abolish the minimum funding requirement (MFR) paves the way for a glut of corporate bond issuance to sate appetite for higher yields - and issuers are already taking advantage of demand.

Gordon Brown, the UK Chancellor of the Exchequer, voiced his support for Paul Myners' review on Wednesday. Myners, the chairman of Gartmore Investment Management, called for the abolition of the minimum funding requirement which obliges pension funds to relate their liabilities to long-dated Gilts, thereby freeing them to invest in a broader range of assets.