MPs probe pensions watchdog over LDI crisis

WPC chair asks TPR if it should have taken stronger action

clock • 3 min read
Photo: Parliament UK
Image:

Photo: Parliament UK

The Work and Pensions Committee (WPC) has asked The Pensions Regulator (TPR) if liability-driven investment (LDI) is fit for purpose and whether it should have taken stronger action to avoid the liquidity crisis that unravelled last week.

After chancellor Kwasi Kwarteng announced his Mini Budget on 23 September, a sharp increase in gilt yields led to pressure on leveraged LDI positions, leading pension funds having to meet fast coll...

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