It’s apparent now that companies in the UK we’re borrowing off the bond gains in their pensions to fund their operations.

This was not the intention of LDI which stood for “Liability Driven Investments”. The purpose was to match the liabilities exposure to rates with assets. Long duration bonds did the trick.

That companies spent the gains on operations and not matched their liabilities with them is pure corruption and they deserved to be liquidated last September when their collateral impaired.

That these companies had to pilfer their pension plan to fund their operations speaks to the malinvestment of their existence to begin with. That they were 1) allowed to do so; and 2) bailed out when it broke speaks to how corrupt the UK is and how little they actually care about those pensioners.

The question we ask now as TSY yields make another climb is: who else was looting their pensions and who is about to get caught?