Financial markets are laden with jargon. For participants, this might be helpful shorthand, but for everyone else, it can be costly.  The recent debacle at the long end of the UK Gilt Market is just the latest example of an opaque acronym enmeshed with unexpected upheaval. In less than six chaotic weeks, the little-known and less-understood liability driven investment (LDI) exposure of UK pension schemes propelled the implosion of a novice Chancellor and then his hapless Prime Minister.  Of course, the fundamental danger is not the distracting jargon. As summarised recently by Patrick Jenkins in the Financial Times, hidden leverage…

Want to continue reading?

Avail of our LIMITED TIME special offer and access this piece – and everything else on The Currency – for one month for just €1.

Subscribe

Cancel at any time.

Are you already a member? .