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These are an obligation of the central government, but the receipts, net of redemptions, go to the state governments, which then repay the centre over 25 years.The states thus have every incentive to raise as much in small savings as possible.
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Since 2012, the sector has lent £51.7bn in mortgages, net of all redemptions.
And if you were to see a flood of net redemptions out of mutual funds, that could be quite dangerous.
The last full year of net redemptions in recent memory was 1994, when 1% of clients' money was pulled out of hedge funds.
Barring a huge shift in sentiment, 2002 is likely to be the first year since 1988 of net redemptions.
Stock funds reported net cash redemptions of $9.7 billion in March, according to AMG Data Services, which tracks fund movements.
In contrast, equity funds and money-market funds have seen net redemptions of $467 billion and $793 billion respectively since the start of 2008.Those numbers are largely the result of retail flows but bonds also appeal to institutional investors.
Bond mutual funds experienced net redemptions of $12.8 billion in December, according to the Financial Research Corporation, a Boston consulting firm.
Funds in the aggressive growth stock category have had net redemptions of $5.41 billion since May, according to AMG Data Services.
In fact, more money was yanked from large-cap stock funds than was pulled from small-cap funds, which had net redemptions of $1.1 billion that month.
Net of fund purchases, stock funds during the period experienced redemptions totaling $854 million; had there been no withdrawals at Putnam, stock fund inflows would have exceeded $3 billion for the week.
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