F
Flamy
Member
Hi, this comes from September 2009 Q2 (i) (c).
ASSET says asset share will fall following the increased yields on government fixed interest bonds.
I am struggling to understand this, as the part of asset share that is impacted - income from government bonds, is not affected I thought, as they are fixed interests. The prices of gilts will fall, but the asset share is not marked to market, is it?
Unless the impact of reduced income from corporate bonds and equities are considered here, I don't see the direct impact to asset share out of gilts. Help please!
Thank you.
ASSET says asset share will fall following the increased yields on government fixed interest bonds.
I am struggling to understand this, as the part of asset share that is impacted - income from government bonds, is not affected I thought, as they are fixed interests. The prices of gilts will fall, but the asset share is not marked to market, is it?
Unless the impact of reduced income from corporate bonds and equities are considered here, I don't see the direct impact to asset share out of gilts. Help please!
Thank you.