Image:
Punter Southall's Pension Safeguard Solution deal origination actuary Chris Parlour
The liability-driven investment (LDI) crisis in September and October 2022, caused by former prime minister Liz Truss and her chancellor Kwasi Kwarteng’s Mini Budget, sparked widespread chaos across the defined benefit pensions industry.
When gilt yields soared, schemes using leveraged LDI to manage their interest rate risk had to quickly post collateral to maintain their hedging. Not all schemes had sufficient liquidity to do s...
To continue reading this article...
Join Professional Pensions
Become a Professional Pensions Lite Member today
In just a few clicks you can start your free Professional Pensions Lite membership for 12 months, providing you access to:
- Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
- Receive important and breaking news stories via our two daily news alerts
- Hear from industry experts and other forward-thinking leaders
