Demand prompts second Morgan Stanley gilt-backed plan
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The product uses the same arrangements as the previous tranche to mitigate credit risk. Triple-A rated UK gilts are used as the underlying bond, while cash collateral is posted daily into a segregated account to secure the returns provided by the derivative component. As gilt yields have recently narrowed, the plan's headline rate will be 1.75% lower than that of its predecessor. However, the bank believes the product is still highly competitive in the market, and advisor feedback indicates that
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