The Great Pension Fund Panic of 2022
A Long Time In Finance
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What's Happening in the Pension Market?
Boots matched assets and liabilities. 100% bonds, 75% fixed, 25% inflation link. We've got as much as the market could give us. So what did we do? We did the first interest rate swaps in 2002. The first one was 15 million quid for 18 years. No swaps were designed as better risk management. And that was all. Neil coined the phrase LDI, leveraged liability driven investment. That has allowed companies through their pension schemes to borrow.
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