The gilt market rout wiped £500bn off pension funds, MPs have been told.
The rout that forced UK pension funds to rapidly sell assets in September contributed to driving down the value of retirement schemes as they struggled to meet urgent cash calls.
Giving evidence to the Commons’ work and pensions select committee, Iain Clacher, a professor at Leeds University Business School, said based on his calculations “roughly £500bn is probably missing somewhere”.
“And this isn’t a paper loss,” he added. “This is a real loss because pension funds were selling assets to meet the collateral calls.”
