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...
To continue reading this article...
Join Professional Pensions
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, analysis and opinion from the industry
- Receive our in-depth monthly magazine in either print or digital format
- Access our Sustainable Investment Hub covering news and opinion from thought leaders in the ESG space
- Receive important and breaking news stories selected by the Editors in our daily newsletter
- Hear from industry experts and other forward-thinking leaders
- Receive a monthly members-only newsletter with exclusive opinion pieces from leading industry experts and a feature from the magazine in advance of its release date
