Gilt Trip: Did UK government bonds almost blow up the financial system?
Many Happy Returns
00:00
Pension Funds Are Not Subjected to Bank Runs
A pension fund should be one of the only asset holders in the market, which is not subject to these short term dynamics. Over time, modern finance will find a way to make it vulnerable to bank runs. LDI could be described as a kind of marketing thing so that investment banks could sell derivatives to real money funds. But there's no question that these LDI schemes were very profitable for the institutions who ran them.
Transcript
Play full episode
