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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (192285)	10/2/2022 10:28:44 AM
From: Pogeu Mahone	Respond to of 217901

Please stop it they are professional economists.:0)))) BlackRock threatened to halt trading at height of UK market tumult 198 BlackRock has been accused of failing to protect pension fund clients by threatening to halt trading in some funds at the height of Britain’s bond market turmoil this week. In a note sent Wednesday morning, BlackRock told clients using its liability-based investment strategies that it would freeze “funds at risk of asset depletion” and convert assets into cash. One professional trustee said the measures have left pension systems unable to take steps to protect their members. Read:XRP Trading Volumes Suddenly Up 542%, What’s Happening?“What we saw, which was concerning for trustees, is that they cannot buy or sell,” said David Fogarty, a professional trustee at Dalriada, a trustee company. The restrictions affected BlackRock’s clients with the responsibility-based investment strategies that lie at the heart of the turmoil. BlackRock, along with competitors including Legal and General Investment Management, Insight Investment and Schroders, operates a portfolio of pension plan LDI funds that use derivatives to hedge against negative movement in interest rates and inflation. Sharp moves in gold yields have triggered demands from some asset managers for clients to raise additional funds to cover the shortfall in their derivative positions. Some pension funds were forced to sell government bonds to raise funds, exacerbating the chaos in the market. BlackRock, which works between pension systems and banks on such derivative transactions, has notified its clients that it will no longer ask for additional collateral. The email to LDI clients, which was seen by the Financial Times and was sent around 11am, said the Bank of England announced its emergency intervention to stabilize the gold market. Read:IEA: LNG Market To Be Even Tighter In 2023“If the collateral ran out, they would say, ‘We’ll close the position,'” Fogarty said, “without going back to ask for more money from the fund. It protects their positions from infection but it doesn’t protect their pension funds.” He added that other LDI managers have set similar restrictions. “BlackRock would have been in trouble with defaulting on its LDI funds if it had not taken these steps, and this is clearly a blow to its reputation that it wanted to avoid,” said one pension expert.