“UK Pension Schemes Are Racing to Raise Hundreds of Billions of Pounds to Shore up Derivatives Positions”
October 12th, 2022Via: Reuters:
UK pension schemes are racing to raise hundreds of billions of pounds to shore up derivatives positions before the Bank of England calls time on support aimed at keeping them afloat.
Governor Andrew Bailey said on Tuesday that the BoE would stop buying bonds as planned on Oct. 14, which would leave pension schemes scrambling after a surge in yields to meet a collective cash call estimated to be at least 320 billion pounds ($355 billion) without a buyer of last resort.The central bank had on Tuesday made its fifth attempt in just over two weeks to restore order in markets.
With pension schemes calling for a deadline extension, the Financial Times on Wednesday reported the BoE had earlier signalled to lenders it might continue the emergency programme beyond Friday if market conditions demanded it, stoking confusion.
