Lessons from Recent LDI Crisis in the UK – Risk Management (including Systemic Risk), Collateral Issues & Hedging Portfolios Going Forward?

Date:

15 March 2023 11:45 to 16:30

Venue:

Zunfthaus zur Zimmerleuten, Limmatquai 40, 8001 Zurich, Switzerland

Chairperson:

Pierre Cardon, Secretary of the Pension Fund Committee, Bank of International Settlements and a Member of the Swiss International Forum's Advisory Committee.

Details:

While LDI hedging is not as widely used by Swiss pensions schemes, are there pertinent lessons that can be learnt from the LDI Crisis in the UK in 2022? We explored issues around liquidity, collateral management, broader hedging including currency hedging. Our speakers discussed the LDI Crisis, what happened and how this could relate to Swiss Pension Funds including learnings around risk management.

Lessons learnt from the UK crisis – Collateral, liquidity, leverage etc
Systemic risks specific for Switzerland given use of currency hedging and underlying collateral is not diversified efficiently. What happens in a currency shock and everyone has to sell collateral at the same time?
How a fully collateralised Pension Fund would manage in a CHF currency shock
Broader Hedging considerations going forward?
Boarder risk management issues
What are the problems with risk in an unsettled environment

Benelux Forum – Belgian Meetings.

Benelux Forum – Dutch Meetings.

International Seminar.

Irish Pension Fund Investment Forum.

Money Purchase Pensions Forum.

Nordic Forum.

Pensioen Bestuurstafel.

Pension Trustees Circle.

Private Markets Investors Forum.

Southern Africa Pension Fund Investment Forum.

Swiss International Forum.

UK Pension Fund Investment Forum.