The pound has rebounded since @bankofengland's market intervention (earlier today it pledged to buy £65bn of long-dated gilts and curtail quantitative tightening ). 
After the Bank of England intervened to calm markets, saying it would buy long-dated bonds at “whatever scale is necessary”, sterling rebounded, and 30-year gilt yields fell to 3.91%. fuelled by the BoE's commitment to postponing quantitative tightening marketwatch.com/story/gilt-yie…
Liability-driven investment blow-up: @bankofengland made its emergency intervention today because pension funds pursuing LDI strategies were left vulnerable to a liquidity squeeze as long-dated gilt yields jerked higher. @toby_n ft.com/content/038b30…
Liability-Driven Investing #LDI sounds arcane but it’s worth knowing about. It was UK pension funds penchant for the strategy coupled with the collapse in long-dated gilts due to Kwarteng's unfunded tax cuts that necessitated Wednesday’s £65bn BoE bailout. afr.com/world/europe/w…
in his @FinancialReview piece @hansvan333 explains what LDI investing is, why UK defined-benefit pension funds do it, and why the Bank of England had little option other than to intervene and prop up the long-dated gilts market yesterday morning. afr.com/world/europe/w…
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