| Pension Funds Using Swaps ! 11:33 - Oct 12 with 1836 views | JACKMANANDBOY |
Behind the politics, what is heart of the UK Bond Market turmoil is pension fund managers using swaps on the assumption that interest rates (and inflation) remain at all time lows. Essentially they have been betting on the yield of bonds and gilts.
So add in some liberal printing of money (pandemic related) coupled with supply shortages, more money chasing less goods inflation, the war in Ukraine pushing up fuel price inflation, an incoherent mini-budget and the risk of using swaps comes home to roost.
Company pensions management is not as highly regulated as investment banking and many pension fund managers have been shouting clear warnings about the swap practices.
The Bank of England is rightly annoyed with the pensions industry.
https://www.morningstar.co.uk/ |  |
| |  |
| Pension Funds Using Swaps ! on 12:56 - Oct 12 with 1785 views | Lohengrin |
”Ensuring economic stability is an exact affair, it requires meticulous planning by men and women specifically trained to the task. An elect group capable of harnessing and coordinating the vital forces of the nation. If The Crash has taught us anything it is that we cannot ever again trust to the blind luck of gamblers.”
That was Mosley addressing the Durham Miners’ Gala 92 years ago. I can’t imagine he would derive a lot of satisfaction from saying ‘I old you so.’ His case has been proven at regular intervals ever since. The more things change the more they remain the same, eh? |  |
| An idea isn't responsible for those who believe in it. |
| |
| Pension Funds Using Swaps ! on 13:29 - Oct 12 with 1771 views | JACKMANANDBOY |
| Pension Funds Using Swaps ! on 12:56 - Oct 12 by Lohengrin |
”Ensuring economic stability is an exact affair, it requires meticulous planning by men and women specifically trained to the task. An elect group capable of harnessing and coordinating the vital forces of the nation. If The Crash has taught us anything it is that we cannot ever again trust to the blind luck of gamblers.”
That was Mosley addressing the Durham Miners’ Gala 92 years ago. I can’t imagine he would derive a lot of satisfaction from saying ‘I old you so.’ His case has been proven at regular intervals ever since. The more things change the more they remain the same, eh? |
“History never repeats itself. Man always does.” Voltaire | |
| |
| Pension Funds Using Swaps ! on 14:18 - Oct 12 with 1742 views | Lohengrin |
| Pension Funds Using Swaps ! on 13:29 - Oct 12 by JACKMANANDBOY |
“History never repeats itself. Man always does.” Voltaire |
“It’s all just another case of history repeating.”
Shirley Bassey. 😉 | |
| An idea isn't responsible for those who believe in it. |
| |
| Pension Funds Using Swaps ! on 18:02 - Oct 12 with 1674 views | JACKMANANDBOY |
| Pension Funds Using Swaps ! on 14:18 - Oct 12 by Lohengrin |
“It’s all just another case of history repeating.”
Shirley Bassey. 😉 |
Shirley Bassey and Voltaire.....never seen in the same room. | |
| |
| |
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.