All LDI crisis articles
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NewsDutch pension funds’ bond sales push down prices, study shows
The extra price drops are only visible for short-duration bonds that pension funds use most to meet margin calls for their interest rate hedges
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NewsDutch pension funds well prepared for liquidity crunch, say regulators
The switch to obligatory central clearing will increase liquidity needs while the transition to DC will likely have the reverse effect, according to regulators DNB and AFM
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NewsFiduciary managers’ mandates fall for the first time, says Isio
Isio’s Paula Champion expects fiduciary managers to look for other pools of assets as the ‘DB world is declining’
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NewsFiduciary management market faced 24% fall in asset value in 2022
Client growth also stalled in 2022 as scheme buyouts and transfers to PPF offset new funds moving to fiduciary management
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NewsValue of UK defined benefit schemes falls by £626bn in 2023
ONS data indicates that the total value of DB pension schemes decreased from over £2trn at the start of 2022 to less than £1.4trn by the end of March
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NewsInvestor group rejects basis for UK government delay of net zero policies
‘Staying the course not incompatible with addressing immediate cost of living concerns’
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Opinion PiecesViewpoint: How to prepare your scheme for the buyout backlog
Schemes must proactively prepare for major delays in risk transfers
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NewsWTW recommends policy changes to fuel UK economic growth
Plus: ABI calls on industry to put savers at the heart of plans to boost pension investment
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NewsUK pensions regulator in hot seat over lax governance of LDI
The Pensions Regulator was not able to monitor whether its LDI guidance on managing risk was being followed, Work and Pensions Select Committee finds
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NewsUK’s pensions regulator to gather feedback on LDI guidance
The Regulator placed ‘huge emphasis’ on operational processes
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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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Opinion PiecesViewpoint: Fee transparency – it’s good for managers too, but they probably won’t believe it
Asset managers are still not properly able to represent the true and comparative value-for-money they provide
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Opinion PiecesLDI lessons: be wary of future traps
After the global financial crisis of 2008-09, world leaders meeting at the Pittsburgh G20 summit mandated central clearing for derivatives. This was to allow for greater supervisory oversight and to mitigate against the unintended build-up of risks of the kind that almost toppled the financial system in the guise of over-the-counter credit default swaps.
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Country ReportUK: A review of the LDI debacle
The UK Parliamentary inquiry into the LDI crisis has shed light on its causes, but the debate over the lessons learned for the UK DB industry is far from over
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Opinion PiecesBlame will not solve the issues raised by the LDI crisis
The chain of events that led to the UK’s liability-driven investment (LDI) crisis, a high-profile inquiry by the UK Parliament, and a time of anxiety and introspection in the country’s pension industry, started well before then prime minister Liz Truss’s government and its somewhat reckless ‘growth plan’.
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Country ReportUK: to barbell or not to barbell?
In the new world of lower LDI leverage, trustees must choose between maintaining hedging or diversification
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NewsUK government says LDI still has useful place in pension scheme toolkit
Collateral buffers behind LDI need to be higher to withstand shocks, Trott tells MPs and Lords committees
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NewsCut LDI gearing, introduce liquidity buffers, says UK parliamentary panel chair
After scrutinising last autumn’s LDI crisis, House of Lords’ Industry and Regulators Committee makes recommendations for reform to UK government
