Who was watching the time-bomb in the pensions industry?
Ask about liability-driven investment and it is striking how little people otherwise expert in financial matters know. Hey, we’ve all been on a crash course in recent days — not least sterling, the gilts market and the Chancellor of the Exchequer.
Still, even those immersed in this corner of the pensions world have precious few hard answers. How big is the market? How fast has it been growing? What is the derivative exposure within it? How has leverage risen?
“In terms of who is doing what business and at what leverage, I don’t think anyone in the market has a particularly good picture”, said Simeon Willis, at consultancy XPS Pensions.
This story originally appeared on: Financial Times - Author:Helen Thomas
