Behind The Markets Podcast: Andrew Okrongly & Ben Clissold
Behind the Markets Podcast
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What's the Current Dynamic?
Rising real rates is good for different benefit pension schemes, but actually the funding position of all those pension schemes improves as real yields go higher. The problem really in September was the speed of the move, and particularly for small-spec pension schemes where there isn't necessarily professional trustees. Some weren't able to get through the process of raising cash from other assets and supply it to where the eye managers to meet the collateral calls. It's clear that some proxy funds have been gated out on a larger scale than would be seen at first blush. I think maybe there's also Pension schemes that were very well funded and got more liquid by investing their assets in less liquid things like property or infrastructure
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