All Liability-driven investment (LDI) 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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NewsSchemes get permanent exemption from derivative clearing rules
Pension schemes will not be required to trade derivatives through central counterparties after the government extended a regulatory exemption indefinitely.
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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 LDI managers are getting ready for the rest of 2024
Following recent warnings about a potential return of deflation, the onus is on LDI managers to ensure their portfolios are prepared.
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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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NewsLDI and the Liz Truss mini budget: One year on, what - if anything - has changed?
Twelves months after Liz Truss’ mini budget exposed weaknesses in liability driven investment (LDI), Pensions Expert looks at what, if any, lessons have been learned.
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NewsCan a specialist service help endgame schemes manage illiquid assets?
The move has been prompted by an improvement in pension scheme funding levels among over the past twelve months, and presenting the option for risk transfer sooner than previously anticipated.
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NewsTPR reports rise in interventions
The Pensions Regulator (TPR) said it had intervened in 22 per cent of schemes, an increase on last year’s 16 per cent.
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NewsLDI use 'must never be allowed to jeopardise UK economy again'
LDI crisis must never happen again, says damning Work and Pensions Committee report
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OpinionLDI crisis confirmed the importance of robust risk management
In the aftermath of last year’s liability-driven investment (LDI) crisis, the need for a more responsible approach to risk management has never been greater.
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NewsDerisking well funded DB schemes may be an opportunity missed
Employers should adopt a more ambitious approach to managing well-funded defined benefit (DB) schemes and see them as an opportunity, according to pensions experts.
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NewsLDI: all in it together, but some responsibilities are regulators’ alone
The Pensions Regulator published new guidance on April 24 that outlined how leveraged liability-driven investment should be used within defined benefit schemes’ investment strategies.
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NewsBank of England: LDI strategies need 250bp collateral buffer
The Bank of England’s Financial Policy Committee announced on March 29 a recommendation to the Pensions Regulator that it specify “minimum levels of resilience” in relation to pension schemes’ liability-driven investments to avoid damaging feedback loops from being forced sellers of assets.
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OpinionBPA market poised to take off in 2023
The pensions universe looks very different in 2023 to a year ago, especially with regards to the derisking market.
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FeaturesThe impact of rising gilt yields on pensions
Following the global banking crisis that started in 2008, the yield on UK government gilts has been on a steady decline, with the EU referendum in 2016 and the impact of the Covid-19 pandemic in 2020 compounding this decline even further
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NewsLords call for ‘far stricter limits’ on LDI leverage
A committee in the House of Lords has called for “far stricter limits” on leverage in liability-driven investments, which it believes caused the Bank of England intervention, while considering giving the Prudential Regulation Authority a role in schemes’ supervision, due to their “bank-like” strategies.
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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.