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Govt debt manager plans new product to boost long-term retail investment

The Government Debt Management Agency (ÁKK) plans to launch a new product in its bid to attract more long-term investment of retail investors in government securities, deputy head László András Borbély said on Tuesday. After the necessary legislative amendment were passed, ÁKK plans to offer a genuine "baby bond", a paper with invested money tied up on long term at the birth of a baby. The stock of government securities held by retail investors grew to about HUF 1,250 billion, but the bulk of it is short-term, and the need for frequent renewal increases financing risks, Borbély said. The stock more than doubled last year when retail investments in government securities reached about HUF 500 billion, thanks to an advertising campaign and attractive yields launched early 2012. The idea is to reduce renewal and interest risks, the ÁKK deputy CEO said.