BoE: Move in gilt yields last week threatened to exceed size of cushion for many LDI funds

BoE: The move in gilt yields last week threatened to exceed the size of the cushion for many LDI funds.

They go on to say..

Had BoE not intervened, a large number of pooled LDI funds would have been left with negative net asset value and would have faced shortfalls in the collateral posted to banking counterparties.


This is basically an exercise by the BoE in making it clear that they singlehandedly saved the Gilt market - Some may beg to differ and side with 'it was a storm in a tea cup'

BOE's Cunliffe: Closely monitoring LDI funds to ensure resilience

BoE says it will unwind gilt market intervention once risks have subsided

GBP GBP The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth Read this Term