The number £1.5tn is big — at least in a UK context. It is 40 per cent of the UK institutional asset management market, two-thirds of gross domestic product and about the size of the government’s total debt, after stripping out bonds held by the Bank of England. This is the quantum of liabilities held by UK pension funds that have been hedged with so-called Liability Driven Investment trades, according to the asset management trade body The Investment Association.
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