Gilt Trip: Did UK government bonds almost blow up the financial system?
Many Happy Returns
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The Doom Loop
Pension funds have to ensure that the interest rate sensitivity of their assets and liabilities match each other. This is typically done with a derivative called an interest rate swap. As you've got the derivatives, you've got counterparties who force you to pay margin. The other problem is that you've got leverage in some cases with the repo transactions.
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