Pension funds hesitate over BoE’s buy-side repo facility
Reduced leveraged and documentation ‘faff’ curb appetite for central bank’s gilt liquidity lifeline
UK pension funds are taking a cautious approach to the Bank of England’s emergency repo facility for non-bank financial institutions, on concerns the benefits may not justify the onboarding upheaval.
The UK central bank opened applications to its contingent non-bank financial institution repo facility (CNRF), aimed at tackling severe gilt market dysfunction, on January 28. Yet many eligible schemes, particularly those running conservative strategies with low leverage, have been reticent to sign
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