U.K. pension funds upped hedging activity in the second quarter amid uncertainty over the economic outlook.
The latest BMO Global Asset Management LDI survey, for which the money manager polled investment bank trading desks to gauge pension fund hedging activity, showed inflation hedging activity grew by 12% in the three months ended June 30, to £39.6 billion ($48.8 billion). Interest rate hedging by pension funds grew 3% to £43.5 billion. Activity included increases in hedged positions and switches between asset classes, Rosa Fenwick, LDI portfolio manager, said in a post on BMO's website.
In the first quarter, inflation hedging activity grew by 21%, to £35.5 billion, while interest rate liability hedging increased by 13% to about £42.3 billion.
One particular theme in the second quarter was a "heightened" use of credit in hedging or cash flow-driven investment strategies, Ms. Fenwick said. "Where schemes were able to access credit rapidly, either via physical or synthetic instruments, they were able to seize the opportunity of a fleeting but dramatic cheapening in credit spreads."
"activity" - Google News
July 29, 2020 at 11:14PM
https://ift.tt/39JYE5Z
UK pension funds increase hedging activity in Q2 - Pensions & Investments
"activity" - Google News
https://ift.tt/3ddCXMh
https://ift.tt/2WkO13c
Bagikan Berita Ini
Hallo kami dari DEWALOTTO ingin membagikan rejeki kepada anda semua hanya dengan bermain bersama kami yuk silahkan buktikan sendiri ya..
ReplyDeleteADD WA +855 888765575 Terima Kasih admint...:)