Comment on Bank of England begins emergency bond purchase programme to restore stabilityparentComments−mamonster3yThey need to post collateral because they have leverage. And they need to have leverage because secure products like bonds don't earn a big enough return to meet pensions obligations. Yields were below 5% for the past I don't know how many years.
Comments
They need to post collateral because they have leverage. And they need to have leverage because secure products like bonds don't earn a big enough return to meet pensions obligations. Yields were below 5% for the past I don't know how many years.