All LDI articles
-
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
-
Country Report
Ireland: Taking stock of LDI
While there are no immediate concerns, liability-matching assets fell significantly last year following rising euro yields
-
Country Report
Ireland: Interview - Pensions Authority keeps an eye on LDI practices
Pensions Authority CEO Brendan Kennedy is not overly concerned about DB schemes’ LDI position, but feels the regulator needs more information. He speaks to Gail Moss about this and other issues facing the Irish industry
-
Special Report
UK pension risk transfer market set for bumper 2023
Improved pricing and funding levels turned 2022 into a busy year for insurers, with more demand expected in 2023. But can they cope with the higher demand and will pricing remain competitive?
-
Features
PensionsEurope: Not all doom and gloom for 2022
After the bumper investment returns of 2021 – the best that many pension funds had ever experienced – last year’s results were disappointing.
-
News
Bank 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’
-
Features
UK fiduciary managers wrangle with LDI fallout
UK Gilt yields rose throughout 2022, even before September’s well-publicised spike caused by the unfunded mini budget. Fears of global inflation, exacerbated by the energy crisis and geopolitical uncertainty following Russia’s invasion of Ukraine, took UK 10-year yields from around 1% in January to 3% in mid-September.
-
Features
Pension funds on the record: how they manage LDI
Pension funds reflect on the role of LDI in their portfolios and the risks associated with an unlikely, but not impossible, sudden rise in interest rates
-
Features
UK LDI woes raise wider European questions
Turmoil in UK Gilt markets has forced continental European pension industries to review their risk management strategies
-
Opinion Pieces
Lessons on LDI: learn from the Dutch cultural revolution
Around 20 years ago, UK occupational pension liabilities underwent a structural change. With assets weighted towards UK equities, still cashflow positive and open to new members and future accrual, liabilities were not too greatly discussed.
-
News
DB 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’
-
News
Bank 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
-
News
Bank of England launches additional measures to help LDI market
LDI will continue to play a role in pension fund strategies despite market turmoil
-
News
UK roundup: Pension schemes boost stress testing as risk increases
Plus: FTSE 350 pension schemes’ surplus falls back to £5bn; Professional trustee market soars
-
News
Analysis: 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
-
Features
Perspective – Liability-driven investing: DIY LDI
A multi-decade trend of falling interest rates, the increased complexity of financial markets and the growing burden of regulation have conspired to turn pension provision into an extremely sophisticated activity. This is especially true for defined benefit pension funds, which may be facing a gradual decline in number, but remain a key source of retirement income.
-
News
DB schemes urged to negotiate fee levels – LCP
Impressive fee savings could be achieved without needing to use fiduciary managers
-
News
Universities scheme eyes ABS debut amid in-house fixed income boost
‘We are taking more of these mandates in house which means we are able to do more to invest the scheme’s assets at a lower cost than paying an external manager’
-
Opinion Pieces
Viewpoint: The tipping point for UK pension schemes
Schemes need to consider how to get to a secure level of funding, but also, the assets they will need to hold when they reach peak cashflows in order to remain fully funded
-
News
Delta Lloyd scheme splits matching holdings into LDI, spread portfolios
It will also raise its stake in emerging market equity as well as real estate to 16.7%
