BarCap slams UK pension rules

The bank criticises inflexibility of the liability-discounting regime

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Barclays Capital has likened pension funds piling into long-dated index-linked gilts to the tech bubble of 1998-2000. And its top London strategist believes the fault lies with new accounting rules that force an inflexible discount rate on pension funds.

Although the UK's Debt Management Office has gained widespread industry praise for issuing the world's first 50-year inflation-linked government bond last year, excess demand from pension funds looking for instruments to match the duration

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