Government Bonds – Page 7
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News
Varma diversifies EM bonds away from govvies with $50m in corporates
Finnish pensions heavyweight makes first foray into EM corporate bonds, buying into HSBC AM’s bottom up fixed-income fund
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Special ReportESG: Leading viewpoint - rethinking sovereign bonds
Sovereign debt markets are not fit for purpose
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FeaturesUK sovereign debt in turbulent waters as challenges remain
The buttoned-up Gilts market has never seen or done anything like it. Trusty stalwart of liability matching for defined benefit (DB) pension schemes, the blue-chip security has already poleaxed a British chancellor of the exchequer just a month in office, and has effectively done the same to prime minister Liz Truss.
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Opinion PiecesAn uncertain outlook for UK pension journey plans
Following the Bank of England’s (BoE) emergency intervention announced on 28 September to stem the sell-off of long-dated UK government bonds, UK defined benefit (DB) pension funds were kept busy, as falling Gilt prices over the past weeks caused mark-to-market losses in liability-driven investment (LDI) strategies.
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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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NewsPrivate equity, mortgages enter net-zero alliance’s protocol in new draft
UN’s investor alliance expands guidance on treatment of sovereign debt in draft of third version of target-setting protocol
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NewsPPF’s 7800 index October update shows increase in aggregate surplus
An improved funding position has made insurance more affordable, opening up new opportunities for schemes to pursue derisking activity, says Standard Life
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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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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
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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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Asset Class ReportsEmerging market debt: China government bonds
The outlook for Chinese government debt is looking less attractive
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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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News
Dutch agri fund sells lower-rated govvies
By reducing or eliminating its allocation to countries such as France and Italy, BPL Pensioen wants to prevent excessive exposure to highly indebted countries
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NewsFondazione Enasarco to invest €500m in Italian bonds
One of the goals of the new strategy was is to cut real estate and increase exposure to liquid asset classes such as bonds and equities
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NewsAPK issues equity mandate worth up to $240m via IPE Quest
Plus: a pension fund in Switzerland and another in Germany tender more than €1.2bn in equities and bonds mandates
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NewsValida introduces inflation-linked bonds with new strategy
Pensionskasse and Vorsorgekasse both increase its equity allocation but made cuts to euro zone government bonds, among other things
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News
Bond volatility demands UK schemes prepare for urgent action, says Aon
The situation has arisen because the bond market has repriced rapidly
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Country ReportCountry Report – Pensions in Italy (July/August 2022)
Italy’s pension industry continues to develop, albeit at a slow pace. Italian pension funds are adapting their strategies to the volatile and uncertain market regime, by purchasing inflation-linked assets and by taking advantage of potentially higher yields on domestic government bonds. However, as our lead article highlights, they are generally staying true to their long-term diversification strategies, which consist of gradually allocating to alternatives including private equity, private debt and infrastructure. Some have bought shares in the Bank of Italy, a private equity-like investment.
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Country ReportItaly: Pension funds adapt to a new regime
Inflation, higher interest rates and geopolitical tensions are leading Italian pension funds to recalibrate their investment strategies
