Gilt-Edged Market

Measuring and comparing returns across the maturity spectrum

Portfolio managers use the yield curve to assess the relative value of investments across the

maturity spectrum. The yield curve indicates the returns that are available at different

maturity points and is therefore very important to fixed-income fund managers, who can

use it to assess which point of the curve offers the best return relative to other points.

Indicating relative value between different bonds of similar maturity

The yield curve can be analysed to indicate which bonds are cheap or dear to the curve.

Placing bonds relative to the zero-coupon yield curve helps to highlight which ...