Tag Archives: gilts

We’re now asking some big questions about DB funding.

One of the big  questions behind the LDI debate is at what point so much of the Occupational Pension Schemes are now backed by Government Bonds (gilts) that the Government pays them. This argument is regularly made by JNAMDOC on … Continue reading

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Why steelworker’s compo is set to fall by £15,000

The FCA has published its proposed redress scheme for steelworkers but it looks like the compensation will cost £49m rather than the estimated £71m earlier this year. The new compensation levels are now estimated to average  £45,000 (down from £60,000)  … Continue reading

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Those whom the gods would destroy, they first make mad

    There is an aspect of the letter from TPR to Work and Pensions Select Committee which we believe warrants unpacking: “Schemes that used LDI strategies to lessen the impact of falling or volatile interest rates over the past … Continue reading

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Gilt yields “Narratives built while the dust is still in everyone’s eyes could fall apart fast”.

I’m writing (and you may be reading) ahead of the opening of Gilt trading on the Morning of Monday 17th October. There are a number of ways that the market could go; Gilt yields could remain at current levels – … Continue reading

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There is no such thing as “risk free” – even when lending to our Government.

In the financial crisis the financial system nearly brought down the Government because of their financial imprudence. Now it’s the other way around, the Government’s imprudence is threatening the financial stability of the UK – including the banks. But this … Continue reading

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In the eye of the storm

Over the past few days, while the  Bank of England intervention in the Long Dated Gilts “Repo” market has been in operation, there has been an insidious increase in the long dated gilt yield. I have been quoting previously the … Continue reading

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LDI – “Blood on the Tracks”

Well, I wanna be your lover, babyI don’t wanna be your bossDon’t say I never warned youWhen your train gets lost Bob Dylan “It takes a lot to laugh, it takes a train to cry” This article is about the … Continue reading

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Green Gilts and the Greenium: Value for money, virtue signalling or breach of trust?

  On 28th May, 2021 the UK Debt Management Office issued a press release which said: “HM Treasury will publish the government’s green financing framework on Wednesday 30 June 2021 and it is planned that the inaugural green gilt issue … Continue reading

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Why do DB transfer values make me sick?

One of the things ordinary people find hardest to work out is why their share of a defined benefit scheme can go up when stock markets go down. This happened last month where the stock market fell. But in August, … Continue reading

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The ABI goes FABI on claims!

    Readers of this blog listening to the ABI’s Huw Evans on Wake up to Money, may have been spluttering into their tea and biscuits! The ABI are faced with a cut in the discount rate used to calculate compensation … Continue reading

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