Why would they *not* do this ? There’s no downside. Nobody ends up losing their job, much less suffering any real personal sanction. The BoE steps in and saves the day.
The important thing to know here is that the Pensions Regulator rewarded LDI:
> And while the Pensions Regulator has admitted to encouraging the use of hedging strategies including LDI, experts told MPs on Wednesday that watchdogs had failed to track the systemic risks associated with their widespread use.
For an explanation of what happened, see Matt Levine at Bloomberg: [UK Pensions Got Margin Calls](https://archive.ph/TokA7)
2 comments
Why would they *not* do this ? There’s no downside. Nobody ends up losing their job, much less suffering any real personal sanction. The BoE steps in and saves the day.
The important thing to know here is that the Pensions Regulator rewarded LDI:
> And while the Pensions Regulator has admitted to encouraging the use of hedging strategies including LDI, experts told MPs on Wednesday that watchdogs had failed to track the systemic risks associated with their widespread use.
For an explanation of what happened, see Matt Levine at Bloomberg: [UK Pensions Got Margin Calls](https://archive.ph/TokA7)