Derivatives Markets: What’s behind the boom year for sterling linkers?

A version of this article first appeared in Total Derivatives. Total Derivatives is the prime source of real-time news and analysis of the global fixed income derivatives markets.

“If someone had said 18 months ago that 18% of our regulatory asset value would be funded by index-linked bonds and that our maturity profile would have risen from an average maturity of 13 years to 30 years, I wouldn’t have believed them” Tom Fallon, UUW

The latest inflation-linked offering from prolific UK issuer United Utilities Water came to the market in mid-November, a £35 million ($66 millon) 50-year issue lead managed by Royal Bank of Scotland.