Tag Archives: Iain Clacher

DB Scheme Funding: Some Empirical Results and Consideration

  We have been collecting the reported funding ratios of DB schemes since December 2022. Through this analysis we are finding some fairly large discrepancies between reported funding ratios and the widely broadcast narrative of highly significant improvements of those … Continue reading

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Portfolio Resilience – the transition to LDI II

Advocates of Liability Driven Investment (LDI) have been busy reassuring the authorities that LDI no longer constitutes a threat to financial stability. They have been doing this, in increasing volume and frequency since the end of the Bank of England … Continue reading

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LDI and Gilt Market Disruptions – some meanderings

Many of the advocates of leveraged LDI have claimed that they were able to weather the March 2020 pandemic panic well. We examine the price movements (using BoE data) over the month of March 2020 below as Figure 1. This … Continue reading

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It’s leverage wot dunnit!

Hidden borrowing, hidden losses and a hidden group of victims from the LDI crisis – that’s what came out of yesterday’s remarkable evidence sessions held in committee room 16 of the House of Commons. Hidden borrowing. The legal argument about … Continue reading

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Holding to Account: Analysis and Resolution of a Crisis . (Keating and Clacher)

This post was written before the second intervention of the Bank of England to shore up pension schemes and the financial system on Monday 10th October. Con Keating will be speaking today (Tuesday 11th)  at a Pension PlayPen coffee morning  … Continue reading

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TPR’s role in the current crisis; Keating and Clacher

Dawid Konotey- Ahulu , one of the architects of LDI comments in today’s FT about last week’s events “UK defined-benefit plans existed in a state of uncertainty . . . [they] simply didn’t know whether they had sufficient assets to pay the pensions … Continue reading

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Anatomy of a crisis

    The calls on DB pension schemes for additional cash collateral arose simply because these schemes have effectively borrowed in a secured manner. While the scale of the margin calls we have seen has accelerated hugely since last week, … Continue reading

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Keating and Clacher explain the threat from the proposed DWP funding regulations

DB Funding Regulations  The story so far The DB Funding Code is back on the agenda following the DWP’s draft funding regulations and comments in the FT from TPR Chair, Sarah Smart. The proposals have brought a number of criticisms … Continue reading

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Join Con and Iain to ask “what can possibly go wrong with LDI?”

Too many webinars are promoting products, too few are discussing a product’s achieved delivery. Dr Iain Clacher and Con Keating use data to analyse the real impact of the LDI strategy on the funding position of pensions and come up … Continue reading

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A Roadmap for Increasing Productive Finance Investment

  A Roadmap for Increasing Productive Finance Investment We consider here the case for investment in less liquid assets and the current DC pension scheme landscape as set out in “A Roadmap for Increasing Productive Finance Investment”. We note first … Continue reading

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