Resources

Gilt market turmoil: Impact on defined benefit pension schemes

by Cardano

The recent gilt market turmoil has had a profound impact on the investment strategies and journey plans of defined benefit pension schemes. As rising yields caused spiralling demands for collateral from liability hedging strategies, schemes were forced to realise other investments, often at unattractive prices.

Schemes that were most challenged were often in pooled LDI arrangements, more highly levered and slow to act in realising the necessary liquidity to meet collateral calls. Schemes that have been unable to maintain their hedging arrangements may have been sorely punished in recent weeks as markets have settled and yields have fallen sharply.

Download this report to learn more about Gilt market turmoil: Impact on defined benefit pension schemes.

Related Resources

Pensions Master Trusts
Corporate Finance

Pensions Master Trusts

18h
Adapting to an inflationary environment
Corporate Finance

Adapting to an inflationary environment

2d
3 Critical Phases of Finance Transformation
Corporate Finance

3 Critical Phases of Finance Transformation

3d

Other resources from Cardano

A changing pensions landscape: Risks and challenges for corporate sponsors in 2022-23
Corporate Finance

A changing pensions landscape: Risks and challenges for corporate sponsors ...

4m