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Cash Is King for Pension Funds After UK Funding Market Shocks

  • Some desperate for cash, others have buffers: M&G’s Moylett
  • Unclear if could spill over into broader liquidity breakdown

A dash for cash among sterling investors after market turmoil sparked by pension fund margin calls is coming at a bad time, according to an M&G Investments executive.

Nina Moylett, the firm’s head of cash and currency, sees her markets as divided between pension funds desperate for cash and others who have built up sufficient buffers. That’s become a crunch issue in UK funding markets and beyond this week after forced selling for collateral led the Bank of England to intervene to stem a rout in bond markets.