LDI

LGIM discusses ways for defined benefit (DB) schemes to build a stable liquidity pool, while balancing future returns and considering the importance of deep liquidity in light of the significant gilt market volatility of 2022.

Two year gilt yields have risen to 4.48%, the highest level since last September’s peak

The LDI crisis has resulted in a step change for the pensions industry

Correspondence comes as part of WPC’s inquiry into liability-driven investment

PP survey finds half of the industry still views ESG as a top priority despite LDI crisis

Regulators publish LDI guidance, and TPR urges trustees to review funding targets

Guidance covers investment, buffers, resilience testing, governance and LDI monitoring

Bloomberg says some pension managers expect to steadily abandon LDI approaches

Hans Stoter says LDI ‘land grab’ could push schemes out of the frying pan and into the fire

The BoE adviser says deteriorating derivative and repo positions led to evaporating liquidity