‘Liability Driven Investment’ explained: the first bailout of the new Global Financial Crisis

First published as an IREF online article on irefeurope.org

‘Liability Driven Investment’ or ‘LDI’ is both a nonsense and a truism, and is now a byword for a disaster in the UK financial system.

Here is what happened. UK pension funds became convinced that they would experience a shortfall of resources to meet their future liabilities to […]