Bank of England intervention should be 'sufficient' to calm market chaos, says Dutch pension fund investor

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Bank of England intervention should be 'sufficient' to calm markets, says Dutch pension fund investor

"One can never exclude that with rising interest rates, these things happen but our situation is quite different. Our pension funds have interest rates swap positions as well."

"We do a lot of stress testing to see what could happen during this situation so we're well prepared, we're able to generate lots of liquidity to deal with a situation like that." APG invests in gilts for its funds, but it does not have many gilt positions for liability hedging, Wuijster said. Liability hedging refers to reducing volatility in assets within funds such as pensions, and therefore minimizing risks to investment returns.I think [the] worst hit are lower income people ... so I think the compensation that was announced in the U.K. is not very much welcomed by market.

 

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Err, no. BoE will have to increase interest rates to upwards of 5 - 6%. The knock on effect to mortgages will increase defaults and repossession. The U.K. economy is FAR from stable. It'll be 12-18 months before full impacts are felt. GeneralElectionNow

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