The Central Bank of Ireland (CBI) published an Information Note on Liability Driven Investment (LDI) Funds following the UK sovereign bonds market turmoil in September 2022 and its impact on UK pensions and LDI funds denominated in GBP.
The CBI engaged with market participants and regulators in the UK and Europe, including CSSF and ESMA, and outlined minimum safeguards for LDI funds. These include maintaining a minimum Yield Buffer of 300-400 basis points and ensuring adequate liquidity in normal and stressed market conditions.
The CBI will continue to collaborate with regulators to manage investment and liquidity risks in the investment fund sector, including LDI funds.
Other Features
AIF
AIFM
assessment
banks
capital management companies
closed-end funds
cooperation
counterparty
credit
financial stability
fund liquidity
fund management
leverage
liabilities
liquid assets
liquidity
model
operational
own funds
pension funds
process
regulatory
resilience
risk
risk management
standard
UCI
Date Published: 2023-03-29
Regulatory Framework: Alternative Investment Fund Managers Directive (AIFMD)
Regulatory Type: procedure
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