BigDoddyKane Posted October 12, 2022 Share Posted October 12, 2022 (edited) one of the problems seems to be no one in the Financial/Economy world seems to prepare for a rainy day anymore, it goes back to the 80s and the big bang in london city markets and has continued through Brown selling the gold reserve, the financial crash 2008 and still seems continue even after all the issues faced Edited October 12, 2022 by BigDoddyKane 0 Quote Link to comment Share on other sites More sharing options...
Detournement Posted October 12, 2022 Share Posted October 12, 2022 Quote “A sharp spike in UK government bond yields following chancellor Kwasi Kwarteng’s September 23 “mini” Budget triggered a wave of cash calls for pension funds that had been using derivatives to manage their risk…” From the FT. Derivatives again. 0 Quote Link to comment Share on other sites More sharing options...
btb Posted October 12, 2022 Share Posted October 12, 2022 3 hours ago, Detournement said: If these are bonds bought on the secondary market rather than at the Treasury auction then it has nothing to do with the government at all. It's like complaining to BMW about the second hand car you bought If pension fund managers are risking their funds to buy low yield bonds on leverage then we are back in 2008 and the bailout needs to be accompanied with legislation, prosecutions and fines to make sure they don't do it again. Have any at risk pension funds even been named? Yeah call me Mr. Paranoid but could any of the scare stories be coming from pension fund managers looking for a "free bet"? 0 Quote Link to comment Share on other sites More sharing options...
Detournement Posted October 12, 2022 Share Posted October 12, 2022 (edited) 9 minutes ago, btb said: Yeah call me Mr. Paranoid but could any of the scare stories be coming from pension fund managers looking for a "free bet"? I've been looking at some FT articles since I got home from work (an exciting day) and as far as I can tell there are no funds named and nothing more precise than that quote in my previous post about the nature of the risk. Smells very fishy. Edited October 12, 2022 by Detournement 0 Quote Link to comment Share on other sites More sharing options...
Detournement Posted October 12, 2022 Share Posted October 12, 2022 “The lack of certainty is creating real challenges [for trustees],” said Andrew Coles, chief executive of Isio, a pension advisory firm. “On the one hand we have an official line which is the deadline is Friday, then stories leak through that if the markets react we might step in. This does not give certainty for trustees and schemes trying to prepare.” So the BoE has told the pension funds they have until Friday to end all the risky derivative shit they are doing and the fund managers are publicly saying that they don't believe them and they think they will get bailed out regardless. 0 Quote Link to comment Share on other sites More sharing options...
doulikefish Posted October 12, 2022 Share Posted October 12, 2022 So is it black Friday part 2 this week? 0 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.