Why UK Pension Fund Selling Stokes Fear Across Global Bond Markets

In the UK, assets are currently being sold from British pension funds to meet different margin calls. The repercussions of this selling of pension funds are starting to have an economic impact all over the world, from New York to Sydney to Frankfurt.



One of the countries that are currently seeing the impact of the selling of different pension assets is the US. Multiple investment-grade bonds are falling, and they currently stand at the average price of 86 cents to the dollar. This is a large reduction when you consider that in September 2021, they were 90 cents to the dollar. The Wall Street trading desk has confirmed that it is British Pension funds that have largely contributed towards the pressure to sell recently.


Not to mention, in Europe, leveraged loans have been bundled into different bonds. These are known as collateralised loan obligations, and they are also under pressure. This has resulted in an increase in the yield premium on Asian investment-grade dollar notes, which currently sits at a two-month high and is expected to continue on a similar trajectory.


Check Why UK Pension Fund Selling Stokes Fear Across Global Bond Markets

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