Autumn Statement comes as 'welcome relief' for LDI market

International law firm RPC says there has been no 'doom loop' in market stability or movement in gilt yields

Commenting on today's Autumn Statement and its impact on the liability driven investments (LDI) market, partner Rachael Healey, said:

"All eyes today have been on the gilts market to see if there was a similar reaction to the September mini-budget which led to a so-called "doom-loop" - and with that an impact on the liability driven investments (LDI) market.  

"The immediate market reaction to the Autumn statement has been relatively stable with no knock-on effect as seen in September.  

"This will come as a welcome relief for LDI fund managers and trustees of final salary schemes alike given the unprecedented movement in gilt yields in September and particularly for those schemes that do not have the liquidity or have otherwise had the opportunity to put hedges back in place.  

"We will have to wait however to see whether the stability continues as the market takes in the detail of the Autumn statement."