The Elephants in the Room Were the LDI's

Lizz Truss said she was astonished to learn that the assets of these LDI pension funds were equated to 60% of GDP. We're talking literally trillions of pounds. The great problem here, and there was a House of Lords Committee report looking into this, was they had not been properly regulated or stress tested. For complicated reasons that I won't go into in this podcast, they get into problems if interest rate moves too quick, too fast.