Loading ...Two problems come out of this Pension problem……keeping rates low to feed inflation and inflate away the debt from 2008, has been at the expense of the Pension funds, as their returns have been decimated, by the low rates…they then get desperate for yield and take on leverage , LDI’s….. as hi I hear as 7 to 1…then as always when rates kick higher, ie mkt reverses, that Leverage works in reverse….rates much higher and decimation of funds.
It all goes back to the Bankster bail out of 2007……
Most scary fact so far ….virtually no trades in JGB’s for 3 days……JGB’s are the worlds largest mkt….