Systemic risk of strategy alignment caused LDI crisis, committee hears

UK pension funds were ‘like a tuna fish in a paddling pool’ in relation to gilt markets

Jonathan Stapleton
clock • 6 min read
Nangle said the sheer size of scheme LDI positions had unsettled the market
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Nangle said the sheer size of scheme LDI positions had unsettled the market

The systematic risk of pension funds all investing in similar liability-driven investment (LDI) strategies was the cause of last year’s crisis in markets, the Work and Pensions Committee (WPC) has heard.

In the first session of the fourth formal meeting of the WPC's inquiry into defined benefit pensions with LDI - held this morning (1 February) - the committee heard evidence from people including B...

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