3min chapter

Coin Stories with Natalie Brunell cover image

Treasury Markets 101 and Bitcoin: What's Breaking and Why with James Lavish

Coin Stories with Natalie Brunell

CHAPTER

Why Not Leverage Up on Derivatives?

Pensions are trying to make enough, create enough income in the future and limit risk. They use swaps which can be helpful because they can trade out variable interest rate securities for ones that are fixed interest rate. The only way they could do that was to sell some of their securities, which were gilts. So it just snowballed. And so the UK, the, the bank of England had to come in and rescue them.

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