Since the start of 2022, we’ve seen a meaningful increase in real yields. For most pension schemes, this has meant the collateral levels within their LDI portfolios have fallen sharply. In this short video, Investment Consultant Joe Evans explains why ensuring you have a suitable level of collateral is a key consideration within LDI and how trustees can manage collateral efficiently.
If you’d like to know more about how we can help you build a framework to efficiently manage your LDI collateral, please get in touch: joseph.evans@redington.co.uk
And for a recap on what LDI is, have a read of this blog: https://redington.co.uk/what-is-liability-driven-investment-ldi/