Why is the Bank of England buying bonds when inflation is at 10%?

Economists warned that the injection of billions of pounds of newly minted money into the economy could fuel inflation. “This move will be inflationary at a time of already high inflation,” said Daniel Mahoney, UK economist at Handelsbanken.

The Bank of England financial policy committee stated that it was to avoid a material risk to UK financial stability. They said the purchases would be time limited and are intended to tackle a specific problem in long-dated government bonds.

This is a concern to some investors since normally during higher inflation a central bank would be more likely to sell bonds instead of buy bonds as the Bank of England has.

If you are an institutional or accredited investor thinking of buying gilts or you want to quickly and totally get out of sterling and instead get into an appreciating currency like US dollars, Alamo Mortgage Holdings, Ltd has a solution for you.

Alamo Mortgage Holdings, Ltd a privately held United Kingdom company, offers corporate income bonds that offer higher rates of return than UK gilts.

Alamo Mortgage Holdings, Ltd a privately held United Kingdom company offers corporate income bonds that pay hundreds of basis points more than UK government gilts and most importantly can be US dollar denominated not Sterling bonds.

Another added advantage to Alamo Mortgage Holdings corporate income bonds is for investors that think the GBP is going to continue to weaken against the USD you can choose what currency you want the bond denominated in.

Alamo Mortgage Holdings sells GBP denominated bonds and then purchases packages of US mortgage notes in the United States in the State of Texas.

The company receives payments in US dollars when purchasing packages of mortgage notes. As a result, we can offer higher returns to Uk institutional and accredited investors.

If you would like to learn more go to www.alamomortgageholdings.co.uk/ and fill out the contact form to request some free information to schedule a Zoom or Google Meet introductory call.

I wish you good luck with your investing!

Benjamin Z Miller, Managing Director
Alamo Mortgage Holdings, Ltd.
[email protected]
www.alamomortgageholdings.co.uk/team.html