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Search resuls for: "Tommy Wilkes Carolyn Cohn"


3 mentions found


☆ How Britain's pension scheme hedge became a trillion pound gamble
  + stars: | 2022-10-15 | by ( Tommy Wilkes Carolyn Cohn | Tommy Wilkes | Carolyn Cohn | ) www.reuters.com   time to read: +9 min
LONDON, Oct 15 (Reuters) - It started out simply enough: British pension schemes were looking for a way to match their assets to future pension payments. But the strategy gradually became riskier, according to interviews with pension scheme trustees, consultants, industry experts and asset managers. Globally, investors are worrying about other financial products predicated on low interest rates, now that rates are rising. Nearly two-thirds of Britain's defined benefit pension schemes use LDI funds, according to TPR. "When people talked about interest rates, all they obsessed about was interest rates falling," said David Fogarty, an independent trustee at professional pension scheme trustee provider Dalriada Trustees.
☆ British pension funds press BoE to extend bond buys amid cash scramble
  + stars: | 2022-10-12 | by ( Tommy Wilkes Carolyn Cohn | Tommy Wilkes | Carolyn Cohn | ) www.reuters.com   time to read: +7 min
While estimates of how much pension funds need to sell vary they are in the hundreds of billions of pounds, and it is not known how much funds have already raised in cash. Tuesday's BoE intervention was targeted at buying index-linked bonds, a far smaller market than gilts, dominated by pension funds and which suffered another significant selloff this week. He estimates pension funds could sell assets totalling around 300 billion pounds as they adjust hedging positions, although it is not clear how much they may have sold already. He estimated 100 billion pounds could come from gilts and the rest from assets such as global credit, global equities and asset-backed securities. "The bottom line is a lot of schemes need to rebalance their portfolios," he said.
☆ British pensions step up multi-billion-pound asset fire sale as need for cash soars
  + stars: | 2022-10-11 | by ( Tommy Wilkes Carolyn Cohn | Tommy Wilkes | Carolyn Cohn | ) www.reuters.com   time to read: +5 min
Compounding the pain, providers of so-called liability-driven investment strategies (LDI) are demanding more cash to support new and older hedging positions. The cash buffers now required are about three times bigger than previously requested, according to four consultants advising pension schemes, as market players seek bigger cushions against more volatile moves in bonds. Estimates of how much pension funds need to sell range but are in the hundreds of billions of pounds, although it is not known how much in assets schemes have sold already. "We are definitely not there," he said, referring to whether funds were close to raising the required cash by selling assets. He estimated 100 billion pounds could come from gilts and the rest from assets such as global credit, global equities and asset-backed securities.
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