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What One Crypto VC Is Focusing on During the Bear Market

The Breakdown

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Using Swaps to Hedge Interest Rate Risk

The size of the global pension fund industry is estimated to be in the 35 to 40 trillion area. The UK pension fund industry has four trillion in assets or roughly 125% of GDP. Pension funds liabilities are a promise to pay a stream of retirement cash flows in the far future, 30 years plus. This organically exposes pension funds to interest rate risk which needs to be hedged at least to a certain extent.

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