Company pension funds can purchase Gilts in order to cope with a variety of risks, including fluctuations in interest rates and inflation, all of which affect the cost of providing pensions. They are also a way for the Government to raise money.
“There was always a risk that if interest rates instead went up, the finances of the scheme would be stretched, but ‘stress tests’ were undertaken to make sure that the fund would be able to cope with any reasonably plausible change in financial markets.” Most schemes had conducted stress tests for a situation in which there was a one per cent rise in long-term Gilt yields, but the four per cent increase exceeded the contingency plans in place.
The Bank’s deputy governor said if they hadn’t some pension funds would have collapsed within hours and risked a “spiral” of ever-higher interest costs on Government debt.
erm she is the conservatives
Why were UK pension funds left exposed by the mini-budget? Because due to a decade of interest rate suppression they had had to leverage their positions (LDIs) to meet pension payments.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Liz Truss's claims are bold - but she's right about the Government's economic blindspotLiz Truss's claims are bold - but she's right about the Government's economic blindspot ✒️ annemcelvoy for ipaperviews
Source: i newspaper - 🏆 8. / 89 Read more »
50 Tory MPs backing Liz Truss on 'growth', claims key ally as she attempts political comebackOne of Liz Truss’s key allies has said the former PM will reflect on “things that could have been done differently” 🔴 But Tory MP Ranil Jayawardena (ranil) said that many MPs still believe in the former PM’s ‘pro-growth’ agenda ranil Does trussliz & the '50' need Saatchi & Saatchi to explain how marketing a fail is a total waste of time? Is Tufton Street so lacking in anyone within the party with a fresh look? Or has anyone with talent realised 55T St is toxic to their career now? ranil What a complete mess the Conservatives are. A weak, corrupt leader under pressure from two former leaders. One who was sacked for constant lying and rule breaking and another who in just 49 days introduced policies that did so much damage to the economy that she had to resign. ranil Strewth! 🙈
Source: i newspaper - 🏆 8. / 89 Read more »
Liz Truss returns - and it could be trouble for Rishi SunakTruss returns to the political fray via a newspaper comment piece - and the PM can't afford to ignore her. laurakuenssberg I'm not sure how. She's an utter laughing stock. laurakuenssberg First set your house in order ,then speak about Hindustan. laurakuenssberg Tory goons lying scum
Source: BBCNews - 🏆 3. / 97 Read more »
Liz Truss Decides Everyone Else Was To Blame For Her Disastrous Time As Prime MinisterNEW: Liz Truss Decides Everyone Else Was To Blame For Her Disastrous Time As Prime Minister KevinASchofield That pretty much sums it up Responsibility is a key Conservative value. It was the lettuce’s fault 🥬
Source: HuffPostUK - 🏆 108. / 51 Read more »
Liz Truss claims she wasn't given 'realistic chance' to enact tax-cutting agendaLiz Truss claims she wasn't given 'realistic chance' as she speaks out for first time since resigning as Prime Minister Mandate? Who gave her a mandate? She’s an idiot that cost the public 73 billion. She should be in prison. Is she working for a foreign power? She did more harm to UK than a missile would. Now she wants a 2nd go?
Source: MENnewsdesk - 🏆 23. / 69 Read more »
Liz Truss blames 'powerful economic establishment' for her failure as Prime MinisterThe former Prime Minister claimed she was never given a 'realistic chance' to implement her radical agenda by her party So being an arrogant airhead had nothing to do with it? I see.....🤔
Source: i newspaper - 🏆 8. / 89 Read more »