Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

Schemes may become over-hedged, triggering a cycle of large gilt sell-offs. This could drive further deflation and market instability, potentially requiring intervention from the Bank of England to stabilise the situation.

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How might negative inflation expectations impact the DB pension scheme system? – LCP

This blog discusses how deflation could pose a systemic risk to defined benefit pension schemes. Particularly those relying on index-linked gilts for inflation hedging, and the potential negative consequences of a deflation spiral.

Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

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