Update on the LDI market | 3 October

The below is an update on recent events in gilt and liability driven investment (“LDI”) markets over the last week, after the Chancellor’s mini-budget on Friday 23 September, which includes our thoughts on how clients should respond.

We are in the process of considering individual circumstances for each of our client schemes, and we will be in touch shortly with our advice. In summary, however, there are risks which have magnified within the LDI market over the last week, to such an extent that there may now be circumstances where the approach to maintaining hedging levels by funding collateral calls needs to be reviewed.

In our briefing note, we explain what has happened in recent weeks and days, the steps we have already taken to help our clients, and how our view on things has evolved.