BP, Rolls-Royce and Royal Mail using funding strategy blamed for meltdown in bond market

[britwrit]

From The Mail on Sunday:

Some of Britain's biggest corporate pension schemes have poured billions into the same complex financial products that prompted a bailout by the Bank of England, it can be revealed.

An investigation by The Mail on Sunday found schemes run by oil giant BP, aerospace manufacturer Rolls-Royce and Royal Mail have huge liability driven investments (LDIs) which are designed to protect against interest rate and inflation spikes.

The widespread use of LDIs by company pension funds running final salary schemes sparked the recent sell-off in Government bonds, known as gilts.

https://www.thisismoney.co.uk/money/mar ... -Mail.html