/biz/ - Business & Finance

>>51703120
As a result of that spike, this cause pension funds to be margin called as described above. Which would have triggered a mass selling of the collateral of the pension funds which likely are 30 yr gilts in order to meet those cash margin requirements of those leveraged interest rate swaps.

Then on September 28, 2022, Bank of England intervene and went on full emergency crisis mode and announced its unlimited QE program in order to buy up all the gilt at 30 yrs and thus implementing trying to control the yield curve on the 30 yr, so that pension funds wouldn't go insolvent.

This sounds like we are heading back to the 2007 financial crisis but much worst.