Loading ...Re Derivative blow up
It seems that the Pension funds may have been buying some kind of Gilt based Derivative, that when rates flew up cut the thing in half, which forced people to sell them, which forced others etc and a doom loop developed…or it is due to the rules the regulator has in the way pension funds must hold Gilts…..
Not sure on details…..but assume u have the same crap derivatives ticking away….but not necessarily the same rules etc.
I do not have any details yet…..but if the BoE hadn.t stepped in then half of our pension funds were gonna be wiped out !!!!!!