LDI Watch

The gilts crisis in 2022 represented a huge test of the abilities and operations of the LDI managers. They differed in how they navigated the challenges thrown up during September and October, leading to markedly different outcomes for the pension schemes that use them. In this note, we highlight what actions the managers took, and the consequential implications for pension schemes. It is clear that any previously held view that it made little difference which LDI manager a scheme picked has been quashed.