BoE proposes minimum resilience for LDI funds

Funds at centre of UK’s bond market 2022 crisis must withstand bigger “yield shock”, BoE says

Bank of England
The Bank of Enlgand
Photo: Juno Snowdon Photography

The Bank of England has proposed a minimum level of resiliency for liability-driven investment funds, after the UK’s bond market crisis in September 2022.

LDI funds were at the centre of the turmoil on the market for UK sovereign bonds, or gilts. The BoE’s financial policy committee (FPC) now estimates LDI funds should operate with at least enough resilience to manage a 250 basis point shock to long-term bond yields.

The 250bp includes 170bp of “systemic resilience” to avoid forced

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account