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Joe Hornyak
Former editor of Benefits and Pensions Monitor and founder of Joe Hornyak Communications
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BOE Eases Pressure On LDI
The Bank of England (BOE) is taking further steps to ease pressure on corporate pension funds using LDI (liability driven investing) and address market turmoil for government bonds. It also pledged to work with regulators "to ensure that the LDI industry operates on a more resilient basis in future," a release says. In late September, UK gilt yields surged?in reaction to the government's ‘mini-budget’?for a new growth plan, putting pressure on UK corporate pension funds' liability-driven investment portfolios. Widely used, total LDI assets reached nearly $1.8 trillion in 2021. The resulting drop in bond prices?triggered collateral calls for many pension funds, prompting the BOE on September 28 to?launch a ￡65 billion bond-buying program?"to enable LDI funds to address risks to their resilience from volatility in the long-dated gilt market. LDI funds have made substantial progress in doing so over the past week," it says. Additional measures aimed at supporting "an orderly end" of the bond purchase program include increasing the maximum size of the remaining five auctions from the current ￡5 billion per auction; launching a temporary expanded collateral repo facility for banks to help client LDI funds with liquidity pressures; and providing additional liquidity in a permanent facility to support bank lending to LDI counterparties.
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Five Generations Look At Work Differently
The five generations in the workplace bring different ways of looking at work, says Buhle Diamini, an organizational culture and diversity expert. He told the 2022 CPBI Atlantic Regional Conference session ‘Navigating the Multigenerational Workforce and Creating Inclusion – Unlocking Cultural Intelligence to Unleash Your Greatness’ that it brings a number of issues including knowledge transfer and career progression in hybrid virtual environment. Another issue is Canada is facing an influx of people coming in from everywhere so employers are not just dealing with generations, they are dealing with cultures. The issue then is as the world becomes more diverse with a hybrid future of work, “how do you unleash the greatness of employees and the organization,” he said. One key is “be who you be,” he said. This is the need to embrace “who you are and embrace who you can be and know who you are and challenge yourself on what you can be. The real value to an organization is when you set yourself apart by what you bring to the table,” he said. So employers need to look beyond generations to culture, diversity, workstyles, and expertise. One example is diversity. It can be used to make a company more productive as the most productive teams are those which are diverse. It needs to be leveraged and made it inclusive so people “can be who they can be,” he said. But those who bring diversity to organizations need to feel included and in an environment where they feel comfortable.
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