All Bank of England articles
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AnalysisBank of England right to scrutinise the role of funded reinsurance
Prudential Regulation Authority calls for limited exposure to reinsurance
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NewsBank of England calls on pensions industry for financial stability responsibility
‘Central banks cannot be a substitute for the primary obligation of LDI funds to manage their own risk,’ says BoE
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NewsAon lauds BoE sparking ‘robust debate’ on wisdom of UK buyout surge
Consultancy responds to warning from UK central bank about risks of insurers rushing to offer bulk annuities to now-healthier DB schemes
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NewsUK’s pensions regulator, FCA set out new LDI guidance
Trustees must understand investment strategy risks, and only use leveraged LDI if appropriate, says TPR
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NewsBank of England tips Pensions Regulator to keep LDI buffers wide
UK central bank advises DB pension funds keep minimum of 250 basis points buffer liquidity – but more on top of that
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NewsBank of England’s latest rate hike could have knock-on effect for DC savers
However, rising interest rates are good news for those thinking of using their retirement savings to purchase a guaranteed income in the form of a lifetime annuity
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FeaturesAhead of the curve: Time to automate collateral management
The resilience of financial markets has been tested several times in recent years, from the so-called ‘dash for cash’ at the start of the coronavirus pandemic in March 2020 to the spike in UK Gilt yields in September 2022.
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NewsBank of England calls for coordinated LDI regulation in UK and abroad
Financial Policy Committee advises regulatory action from TPR, FCA and overseas regulators, ‘to ensure LDI funds remain resilient to the higher level of interest rates’
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NewsUK pensions committee launches inquiry into DB schemes with LDI
Inquiry will focus on impact of recent volatility in Gilt yields on DB schemes with LDI strategies and their regulation and governance
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NewsUK pensions industry to keep vigilant despite stable bond yields following ‘mini budget’ u-turn
The near-term technical picture is not a positive one, says Hymans Robertson
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NewsDanish PFs: UK LDI fright shows need for stress tests, central clearing rethink
Sampension, PFA CIOs say UK-style crisis less likely in Denmark because of larger, more liquid euro market
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NewsDB pension schemes ‘are not at risk of collapse’, says TPR
Regulator’s CEO says ‘it is absolutely clear that there have been liquidity issues in some of the funds’
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NewsBuyers beware? SPP panel ponders bulk annuities
Pensions industry should focus on long-term implications, says regulator
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NewsBank of England keeps tight grip on Gilts market
The purpose of these operations is to enable LDI funds to address risks to their resilience from volatility in the long-dated Gilt market
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NewsBank of England launches additional measures to help LDI market
LDI will continue to play a role in pension fund strategies despite market turmoil
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Opinion PiecesTrustees must assess impact of rate hikes
The Bank of England (BoE) has hiked its policy rate by 50bps to 2.25%, prioritising the fight against inflation over support for growth in its domestic economy. This interest rate increase has hit levels not seen since the end of 2008 but in line with a majority of economists’ consensus.
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AnalysisAnalysis: Goodbye, LDI? Too early to say
The sudden and unprecedented rise in Gilt yields, caused by the UK government massive fiscal stimulus announcement, tested the risk management strategies of UK DB schemes
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NewsBank of England intervention eases pressure on DB schemes facing margin calls
Pension funds should proactively look for ways to shore up liquidity, says consultancy
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NewsUK pension funds predict higher inflation for longer
A difficult road ahead, with recession on the horizon, economists predict
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NewsBoE test suggests net-zero transition ‘absorbable’ for banks, insurers
Climate stress test points to profit reductions but no ‘worrying direct impact’ on solvency
