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

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

Border to Coast private markets programme surpasses £23bn

Border to Coast private markets programme surpasses £23bn

LGPS pool said it has enabled access to the programme for 17 of its partner funds

Holly Roach
clock 12 August 2026 • 1 min read
BT Pension Scheme and Brightwell extend servicing mandate with Northern Trust

BT Pension Scheme and Brightwell extend servicing mandate with Northern Trust

Brief includes custody as well as investment operations and derivatives outsourcing

Jonathan Stapleton
clock 12 August 2026 • 1 min read
Third-party evaluators complete majority of fiduciary manager searches

Third-party evaluators complete majority of fiduciary manager searches

IC Select says fiduciary management market has entered a more ‘mature’ phase

Martin Richmond
clock 11 August 2026 • 3 min read
Trustpilot