100 year bonds

  sunnystaines 18:59 14 Apr 2012
Locked

Cannot grasp these 100 year bonds that no one wants, how can they force pension investments to buy them, or have i miss under stood the story on the news.

any one able to explane the forced to buy part please

  OTT_B 23:52 14 Apr 2012

I'm not aware that anyone will be forced to buy them, insomuch as any legislation goes. The bond market is, when all is working without any threats of default, an open market. All the government could do is only sell 100 year bonds, and withdraw the current 30 and 50 year bills. By no means would that mean that investment companies would automatically start buying the new 100 year bonds though.

Why do you think otherwise?

  wiz-king 08:35 15 Apr 2012

Not even 100 days left - Apocalypse

  sunnystaines 09:10 15 Apr 2012

ottb............. perhaps i got it wrong but did hear it on two occasions

  OTT_B 10:54 15 Apr 2012

sunnystaines

If you can find a reference to it that you can link to, I would be very interested. In the mean time, I'd guess that whoever has said / written that the bond purchases could be compulsory has misunderstood something.

  sunnystaines 12:45 15 Apr 2012

found this in the guardian,but heard on both sky & bbc news

"Pension funds might, however, be forced into buying the 100-year gilts to meet regulatory requirements, owing to a lack of suitable, risk-free alternatives"

http://www.guardian.co.uk/business/2012/mar/14/george-osborne-100-year-bonds-gimmick

  Terry Brown 15:16 15 Apr 2012

If the pension companies were forced into buying the bonds, by government regulations, how do you think the pension compnies would pay for your pension in future years. They are a Business, not a charity.

Terry

  Woolwell 16:40 15 Apr 2012

Other sources do not state that Pension Funds will be "forced" into buying these bonds. Prefer the FT view FT

  QuizMan 23:04 15 Apr 2012

This is nothing new. To the best of my knowledge, the Government issued 3.5% War Stock from the 2nd world war has never been redeemed so that has been around for 70 years.

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