What a wonderful chart. If you do nothing else, play it as a video. Then consider the past two years and ask yourself
How did pension schemes get it so wrong?
We were given ample warning of the crisis that was to beset leveraged liability investment.
We did not have the governance measures in place to take hedges off before the gilt yields rose.
As a result billions of pounds of productive investment was lost to meet collateral calls
We believe we have escaped from this without damage, but in 2022 UK DB occupational pension schemes lost £600bn and the leverage nearly broke the market.
We must learn from this.
