The British bond market saw a moment of calm in early action on Thursday, one day ahead of a Bank of England's self-imposed deadline to stop its support of...
The British bond market saw a moment of calm in early action on Thursday, one day ahead of a Bank of England’s self-imposed deadline to stop its support of the market.
... The British bond market saw a moment of calm in early action on Thursday, one day ahead of a Bank of England’s self-imposed deadline to stop its support of the market. The central bank’s purchases of gilts are focused on the longer end of the maturity spectrum, to help pension funds unwind their strategies that ended up being leveraged bets on U.K. bonds.
Bank of England Governor Andrew Bailey told pension funds they need to finish rebalancing their positions this week, even as the pension fund industry has asked for the central bank to keep support in place until the end of the month. The Bank of England said there’s over £1 trillion invested in liability-driven investment, or LDI, strategies.