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

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

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