Sovereign wealth funds are keeping faith with UK government bonds, despite the country losing its prized triple A rating last month.
The UK is in effect winning a “least ugly competition”, say investors at such cautious funds, because the financial crisis has left fewer places to park their money.
Their backing for the UK highlights how some investors at least have taken in their stride the political backlash against George Osborne, the UK’s finance minister, who was heavily criticised over the one-notch downgrade by Moody’s, the rating agency.
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