LDI managers disagree on credit collateralised gilt repo

BlackRock and Schroders execute first trades, but others favour different ways to source liquidity

Gilt-repo-disagreement

A change of practice from two asset managers promises to help pension funds weather a repeat of the UK’s gilt crisis in 2022. Some in the industry, though, won’t be following suit.

BlackRock and Schroders last month began to use corporate bonds as margin for pension schemes’ leveraged gilt positions, a step first considered by asset managers last year. The two firms claim the practice could save schemes from having to sell assets rapidly in a stress event in future. 

Legal & General Investment

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here