Case study: Taking action to find solutions during the LDI crisis

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Background

We act as co-trustee for a £5+bn hybrid pension scheme for a multinational financial services company.

Taking swift action to support the client

During the LDI crisis, rather than selling bonds purchased as part of a cashflow matching strategy, we were able to put in place a temporary loan from the Sponsor to meet collateral calls.

Thanks to our extensive network we were able to quickly obtain legal advice that the loan was permissible and get the loan documentation drawn up in a couple of days in a manner that was satisfactory to all parties.

How this delivered for the client
All parties benefitted. The loan has now been repaid given the falls in interest rates, resulting in excess collateral, offering greater options for future plans.