A banker who helped to design the pension investment strategy that nearly collapsed last week said it was not designed to withstand the ‘ferocity’ of the gilt market sell-off that pushed it to the brink.Dawid Konotey-Ahulu, one of the architects of liability-driven investing (LDI), defended the strategy and said it had ‘helped stabilise pension funding over the past two decades’. LDI funds linked to millions of final salary retirement schemes teetered on the brink of default after a bond market sell-off in the wake of Kwasi Kwarteng’s mini-Budget.
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