NSI Index Linked Certificates move to CPI

londoninvestor

dividendhero wrote: »

Gilts aren't held by the little people

Although, as we were discussing on another thread, index-linked gilts now yield around RPI minus 1.6%. If ILSCs start being renewed at something like CPI+0.01%, they're still giving more than index-linked gilts do.

A shame you can only hold ILSCs in what (by the standards of gilts) are "little people" quantities!

talexuser

kidmugsy wrote: »

Well done. You've entirely missed the point.

I did too, but get it now however reverting to a David Mitchell logic rant, it should be 0.81% to get back to where we were

p.s. wishful thinking!

polymaff

Or even 0.9%. That's the recent trend for RPI - CPI.

ffacoffipawb

polymaff wrote: »

Not even consistent.

"Index-linked gilt payments will continue to be linked to the RPI."

Very consistent.

Savings certificates will be changed to CPI on renewal. They continue at RPI until then. The original RPI basis was set at each commencement.

Index linked gilts remain at RPI until maturity or earlier redemption. Again, the RPI basis was set at issue.

Interested to see if any new CPI linked gilts will be issued at some point.

poppy10_2

ffacoffipawb wrote: »

Interested to see if any new CPI linked gilts will be issued at some point.

The government would love to, but it's just not proved possible due to market demands