That was splendid for the purchasers, but rather unwise of the life companies, which had no way of hedging their liabilities with fixed-interest assets with a similarly high yield.

ECONOMIST: Not all it should be

And as the FT points out this morning, for the first time ever UK pension funds now hold more bonds than equities: the Pensions Regulator shows that UK funds hold 43% of their assets in gilts and fixed-interest debt compared with just under 39% in equities.

BBC: Holy pension hole

Strong government balance sheets and higher interest rates will continue attracting foreign investor capital into fixed income assets in places like Brazil.

FORBES: Bonds Preferred As Emerging Market Flow Slows