As a trustee I signed up to it. And will possibly do so again. I don't think the dodgy CDOs are a good analogy. With LDI we know what the investments are and in fact there has not been any materialisation of credit risk- because they were government bonds.
Implicitly we didn't think the likelihood of a bonkers prime minister and chancellor was very high. And it wasn't. But it happened.
Anybody who is totally confident nothing can go wrong is a fool.
Pension funds just got caught in the crossfire. The threat to funds' liquidity bore on the Bank's timing of its intervention but I don't doubt that intervention would have come, and there is still a threat to financial stability which the country needs to live with 2.5 trillion of government debt.
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