All Gilts articles
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NewsBank of England launches repo facility for pension funds
The Bank of England has this week opened a derivatives trading facility to support pension funds and liability-driven investment (LDI) managers at times of market stress.
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NewsPension schemes have ‘learned key lessons’ from 2022 as yields rise
Investment professionals have played down the impact of rising bond yields on pension funds as the yield on the 10-year gilt hit its highest level since 2008 this week.
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NewsWhat the next gilts market shock could look like
The Bank of England has published the results of a wide-ranging scenario analysis involving pension schemes, liability-driven investment strategies and insurers – and found that lessons have been learned from the 2022 gilts market shock.
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FeaturesHow are DB schemes changing the gilts market?
Data from Bloomberg Intelligence suggests that DB schemes could sell out of the gilt market completely in seven years. But is it accurate?
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NewsLearning lessons from the gilts crisis
A year on after the historic collapse and bailout of the gilt market, has the pensions industry learnt lessons?
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News‘Systemic risks’ in rushing to embrace insurer buyouts, warns SPP
In its Vision 2030 report, the Society of Pension Professionals (SPP) warned that insurance buyouts ‘may not always be the answer’ and diversification of endgame options beyond government gilts was needed to secure the long-term future of all pension schemes.
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OpinionTurbulent weather ahead for DB schemes
We live in a world right now that seems fraught with risks.
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NewsMorrisons scheme secures buy-in on back of gilt yields rise
On the go: The Wm Morrison 1967 Pension Scheme has agreed a £762mn buy-in with Rothesay, securing the remainder of the liabilities for the 1967 section of the Morrisons Retirement Saver Plan.
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NewsManagers using LDI debacle to ‘grab assets’ from schemes
Asset managers are using the liability-driven investment turmoil as an excuse to “grab assets” from defined benefit schemes by demanding buffers higher than those recommended by the regulators, a former fund manager has revealed.
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NewsLDI turmoil could reduce DB schemes’ investment in illiquids
The fallout from the September market turmoil will be “wide-ranging” for UK defined benefit schemes, with regulatory changes influencing their capacity to invest in less-liquid growth strategies, according to a new report from Bloomberg Intelligence.
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NewsLDI funds sold £23bn of gilts during market turmoil
Liability-driven investment funds sold £23bn of gilts in three weeks during the market turmoil in 2022, with pooled funds being forced sellers, Andrew Bailey has revealed.
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NewsGovt actuary calls for improved data on schemes' LDI strategies
The government actuary has called on the Pensions Regulator to start collecting more data from defined benefit schemes about their liability-driven investments, among other suggestions to increase the visibility of risks associated with these strategies.
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NewsDB schemes’ surplus rises £5.2bn in December
On the go: The aggregate surplus of the 5,131 defined benefit schemes in the Pension Protection Fund 7800 Index increased by £5.2bn in December.
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NewsPPF urged to consider FCA authorisation
The Department for Work and Pensions has encouraged the Pension Protection Fund’s board and executive to consider seeking authorisation by the Financial Conduct Authority, either for the PPF itself or for a subsidiary.
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NewsSmaller schemes face ‘significant’ costs with TPR DB funding code
While the Pensions Regulator foresees an initial hike in implementation fees followed by reduced costs in the long term, experts have warned that the new defined benefit funding code will be particularly onerous for small schemes.
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NewsTPR rejects claim of having pressured schemes into LDI
The Pensions Regulator has pushed back against a suggestion put to the watchdog by MPs that it pressured some pension schemes towards liability-driven investments, when they did not think LDI was appropriate for them.
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NewsTPR ‘dials down leverage’ in DB funding code fast-track
The Pensions Regulator has lowered the amount of leverage that it deems acceptable for schemes to have to meet the requirements for a “fast-track” valuation, as part of its new defined benefit funding code.
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NewsManufacturer claims actuaries ‘almost put us out of business’
On the go: Construction products manufacturer Dixon International Group has told the Work and Pensions Committee that actuarial pressures in relation to its defined benefit scheme “almost put us out of business and several times pushed us into loss”.
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NewsFCA urges LDI stress-testing in the face of rising buffer costs
The Financial Conduct Authority has called on asset managers to stress-test the “operational consequences” of improved liquidity buffers for liability-driven investment funds, recognising the additional costs that these buffers impose on pension schemes.
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NewsBigger LDI collateral buffers will increase sponsor reliance, MPs told
The Work and Pensions Committee has been reminded of the trade-off between bigger collateral buffers and investment returns, with one chief executive warning that buffers of 400 basis points would force some schemes to “pare back their growth ambitions” and increase their reliance on sponsor contributions.