The Coming American Retirement Crisis

The first Central Bank to pivot was the Bank of England. The bank did so to avoid a pension crisis and bail out big pension fund managers like BlackRock. As I explained in piece on Substack, the British bond market broke down. As the Washington Post explains, many of these pension funds were invested in LDIs. LDIs are a form of derivative swap agreement pension funds made with asset management giants like BlackRock to protect these giant pension funds against declining bond yields. Fixed income securities yields during the 2010s began falling thanks to money printing and QE by global…