Risk of LDI funds triggering a 'fire sell' in gilt markets is 'significantly reduced' - BofE

Risk of LDI funds triggering a ‘fire sell’ in gilt markets is ‘significantly reduced’ – BofE

Liability-driven investment (LDI) funds have accumulated enough capital to withstand “much larger increases in yield than before”, the Bank of England (BofE) said, with the risk that the funds LDIs trigger “fire selling” momentum in “significantly reduced” gilt markets. In a letter to the Treasury Committee, BofE Deputy Governor, Financial Stability, Jon Cunliffe, confirmed that …

Risk of LDI funds triggering a ‘fire sell’ in gilt markets is ‘significantly reduced’ – BofE Read More »