LDI leverage cuts will push schemes to choose less hedging or lower returns

Aaron Punwani says the key question is what is the right level of leverage going forward

clock • 5 min read
Aaron Punwani: Risk models and a probabilistic view of the world can only take you so far
Image:

Aaron Punwani: Risk models and a probabilistic view of the world can only take you so far

The time limited intervention by the Bank of England (BoE) restored orderly functioning to the gilt market last week, but even in the short term, who can confidently predict what’s going to happen on 14 October when the bank has signalled it will withdraw its support?

Many trustees may be wondering what happens when the BoE steps back but it is worth remembering that the Bank didn't actually buy many gilts at the end of September - it was the signalling of suppo...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

PIC funded regeneration development set to welcome first residents

PIC funded regeneration development set to welcome first residents

£130m development comes in partnership with Peel L&P and Wirral MBC

Jonathan Stapleton
clock 22 July 2024 • 1 min read
Partner Insight: Powering the future - The strategic role of data centres in the AI evolution in Europe

Partner Insight: Powering the future - The strategic role of data centres in the AI evolution in Europe

Data centre demand is surging, driven primarily by the rapid evolution of AI technologies. In PIMCO’s view, this represents a significant opportunity for investors in European data centres.

Kirill Zavodov, Executive Vice President, Portfolio Manager @ PIMCO
clock 22 July 2024 • 5 min read
Avon Pension Fund makes £50m affordable housing investment

Avon Pension Fund makes £50m affordable housing investment

Investment will fund around 250 new homes for up to 1,000 people

Holly Roach
clock 18 July 2024 • 1 min read
Trustpilot