Posts by Mark Baker, Mike Paolucci
Gilt Trip: What Plan Sponsors Can Learn from the U.K. Pension Fund Crisis
Pension plan sponsors across the United Kingdom endured a harrowing week in late September as an unexpected spike in long gilt (or U.K. government bond) yields exposed their levered hedging programs to the brink of insolvency. Some sponsors went to bed feeling secure about their diversified plans (with seemingly prudent hedges) and woke the next…
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