Bank of England backs ‘substantial’ LDI cash buffer boost to prevent repeat of mini budget chaos

Pension funds that borrow hundreds of billions of pounds to maximise returns for clients need to keep more money aside to withstand a repeat of the financial market aftershocks which followed Liz Truss’s mini-budget, the Bank of England has recommended. Liability driven investment (LDI) funds that are used by retirement funds to boost returns for [...]