UK pensions hit with £100m margin calls as gilts and sterling slide

At least three LDI managers request emergency capital as others consider unwinds to avoid default

UK pension funds have been hit with variation margin calls of as much as £100 million ($107 million) each, after sharp falls in gilts and sterling pushed mark-to-market valuations on derivatives and leveraged repo positions heavily against them.

Simeon Willis, chief investment officer of consultancy XPS Pensions Group, says he knows of three different fund managers running pooled pension portfolios that have requested emergency capital from clients to keep positions open.

“Unless clients