They Used To Say the Sun Never Sets on the British Empire
Real Vision: Finance & Investing
00:00
What Happened in the UK?
Pension funds were under pressure due to margin calls on a receiver swaps. They've received fixed interest rates in swamp agreements. When the far end of the yieldkerve accelerates like crazy, which is what we've seen in the uks. The exact same pension font started selling gilts to try and come up with cash as collateral in these agreements. And ultimately the bank of england had to step in with direct intervention in the yield curve. So there is is this ce or what is it? Meanit walks like a duck, quacks like a duck? I defenly a duck.
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