SLP432 James Lavish The Great Debt Spiral
Stephan Livera Podcast
00:00
How to Get a Better Return on LDIs, Right?
In the UK, pension funds were using LDIs and then leveraging them up in order to get a better return. As these as investors sold those gilts, they went down that would trigger a margin call for the UK pensions. The Bank of England stepped in because the pension funds basically said, hey, look, if you don't step in, we're literally going to default.
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