Lessons from the LDI pension crisis

What have we learned from the past few weeks and what needs to change in the LDI sector?

clock • 11 min read
Lessons from the LDI pension crisis

Many schemes have flooded into liability-driven investment (LDI) in recent years to manage interest rate risk, but the past few weeks have caused the industry to question the validity of these strategies.

Schemes faced hard and fast margin calls on their positions, forcing them to shore up collateral to maintain their hedge and causing a major liquidity crisis in the markets as funds had to sell oth...

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