Work and Pensions Committee: Written evidence published for inquiry into Defined benefit pensions with liability driven investments - Nov 23

Increases in yields on long-dated gilts in late September and early October meant defined benefit (DB) schemes using liability driven investment (LDI) strategies needed to deal with the rapid increase in collateral required to support the LDI trades. This led to the Bank of England’s announcement on 28 September under its Financial Stability remit of the temporary purchase of long-dated gilts until 14 October.

The Work and Pensions Select Committee is conducting a short inquiry on the lessons to be learned from this experience, focusing on the impact of the recent volatility in gilt yields on DB schemes with LDI strategies and their regulation and governance.

Witnesses: Lane Clark and Peacock

Witnesses: Jonathan Camfield (Partner at LCP)

Witnesses: Pensions and Lifetime Savings Association