Could more margin issues arise one year on from the gilts crisis?

Joe Midmore asks if schemes could still be exposed to sudden spikes in margin

clock • 3 min read
Could more margin issues arise one year on from the gilts crisis?

September 2023 marked a full year since the Truss government’s disastrous Mini Budget sparked mayhem in British sovereign bond markets. Within three days, yields for the 30-year gilt spiked by 120 basis points – one of the greatest leaps ever seen in such a short space of time.

Of course, a significant contributor to the sell-off were the often leveraged liability-driven investment (LDI) strategies used by many defined benefit pension funds. Following the unexpected rise ...

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