WPC inquiry hears calls for LDI leverage constraints

Actuaries call for guidance to make it clear what appropriate levels of LDI leverage are

Jonathan Stapleton
clock • 2 min read
LCP's Jonathan Camfield: Some sort of strong guidance from the regulators  would be helpful
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LCP's Jonathan Camfield: Some sort of strong guidance from the regulators would be helpful

Regulators should introduce greater guidance around the amount of leverage allowed in liability-driven investment (LDI) portfolios to stop “competitive pressures” ratcheting up the levels of systemic risk in schemes once again.

In the second part of the first formal meeting of the Work and Pensions Committee (WPC) inquiry into defined benefit (DB) pensions with LDI - held this morning (23 November) - the committee heard e...

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