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Liability Driven Investments..

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  1. #21

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    So I think my phone is haunted or some content tripped a secret galaxy zero sum rule. There's a part that just doesn't show and not at fixed points however I cut and paste or redraft. Have to abandon

    Pls pls pls just rem to chat with all ur friends and relatives about having your pensions used as brokerage funds and not sitting in bank with usual bank protection confines. I am not suggesting any misconduct or insider scam - they probably discussed this for months with accountants lawyers etc. But it is bad financial management and even worse, done primarily for ease of preparing filing obligations. All it takes is for enough emails to govt addy asking for more details like so where are our pensions actually held? Are they in a bank? What was the actual derivatives trade? Reply or no, they will get the vibe ppl want more info and are concerned. This is really important. Now might be the best time because of timing with other issues and politicians are sensitive to public opinion atm.

    It is the construct that is the problem and the playground it is happening at. Margin trading alone should have sent ppl scurrying for the hills so the decision makers at the pension fund are clearly forgetting their role in the big picture. This is a full combination of margin trading with derivative contracts as a financial institution in a hedge trading framework. I wish we knew the actual derivatives trade so it's easier to use as example. In any case, the potential loss is >100% so long as whatever they were betting on is still a live figure in the market. Do not forget about this and keep your eye on it unless and until someone announces your pension is deposited in a custodian account or at least no longer being traded like this. It has nothing to do with healthy funding ratios or leverage ratios or how nice and robust and overfunded they look right now. Can I remind that if the figures look real nice now, the credit is that of BOE saving the day and not really the strategy that worked out so well?


  2. #22

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    Quote Originally Posted by sarsi:
    So I think my phone is haunted or some content tripped a secret galaxy zero sum rule. There's a part that just doesn't show and not at fixed points however I cut and paste or redraft. Have to abandon

    Pls pls pls just rem to chat with all ur friends and relatives about having your pensions used as brokerage funds and not sitting in bank with usual bank protection confines. I am not suggesting any misconduct or insider scam - they probably discussed this for months with accountants lawyers etc. But it is bad financial management and even worse, done primarily for ease of preparing filing obligations. All it takes is for enough emails to govt addy asking for more details like so where are our pensions actually held? Are they in a bank? What was the actual derivatives trade? Reply or no, they will get the vibe ppl want more info and are concerned. This is really important. Now might be the best time because of timing with other issues and politicians are sensitive to public opinion atm.

    It is the construct that is the problem and the playground it is happening at. Margin trading alone should have sent ppl scurrying for the hills so the decision makers at the pension fund are clearly forgetting their role in the big picture. This is a full combination of margin trading with derivative contracts as a financial institution in a hedge trading framework. I wish we knew the actual derivatives trade so it's easier to use as example. In any case, the potential loss is >100% so long as whatever they were betting on is still a live figure in the market. Do not forget about this and keep your eye on it unless and until someone announces your pension is deposited in a custodian account or at least no longer being traded like this. It has nothing to do with healthy funding ratios or leverage ratios or how nice and robust and overfunded they look right now. Can I remind that if the figures look real nice now, the credit is that of BOE saving the day and not really the strategy that worked out so well?
    You really have no idea what you are talking about.

    Just about your comment about deposit it in a bank: You want your pension deposited in a bank account? So that is one way to make sure that by the time you should receive your pension that you can't buy anything with that money (inflation??) and not to mention that most places have only a guarantee of 100k.

    Just a few facts:
    A pension fund is usually either managed by (multiple) asset managers or if they are big enough they will have their own investment arm.
    The asset manager is only allowed to invest in securities that are stipulated in the agreement with the client (this includes derivatives, hedging, margin etc...)
    Securities are always held with a custodian.
    And pension funds (at least in the west) have very strict reporting rules to the regulator.
    hullexile likes this.

  3. #23

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    Omg why are ppl considering this issue by nitpicking over the words I'm using? Or even have the impression that I'm really suggesting the pension funds need to be locked in a time deposit growing mold. Your fund reporting requirements is one thing. The trading and strategy they are doing that helps with preparing for the requirements isn't the actual requirement. How can ppl still be looking at this issue like its just a forum discussion and reviewing the issue strictly on my words. I don't understand How can anyone still be on this at all after what I've pointed out. The derivatives contract that is at the heart of this is probably still live and ongoing. How high the fund is leveraged isn't the same as potential derivative liabilities. I don't understand this complete blind faith in the system. Whatever, for what it's worth, anyone else who may still be wondering what to make of this, it doesn't take much to send that email like I suggested.


  4. #24

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    @sarsi, paragraphs would make your posts much, much easier to read. And appear less like shrill panicking.

    Are you typing all of these post on a phone or a tablet? That might explain the formatting and other eccentricities.


  5. #25

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    Because I am panicking. I haven't managed to encourage or scare anyone enough to go read and consider the BOE and hedging on their own independently and any thot on this still stuck on debunking what I said and proving I'm someone who doesnt know shit. We all need more info but ft and Wsj didn't ask so pls just consider sending some emails when free.


  6. #26

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    Then perhaps panic quietly instead of all over the internet, because it doesn't do anyone else any good. Even if you have a good point to make, conveying it in this fashion just detracts from whatever it is you're trying to say.

    It's really hard to take someone seriously if they insist on remaining semi-incoherent via phone messages.


  7. #27

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    Quote Originally Posted by jgl:
    @sarsi, paragraphs would make your posts much, much easier to read.
    I was thinking the same, but then actually nah probably not, would still be going right over my head. sarsi seems to be pointing at something big that none of us can see, and is apparently quite dissapointed we are not writing emails to someone about it and talking to our family and friends. If I knew what it was I am suppose to write/talk about then maybe I could consider it.

  8. #28

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    Wow seriously.


  9. #29

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    Quote Originally Posted by sarsi:
    Wow seriously.
    Yes seriously. You are like a headless chicken. I really want to follow your argument but I am finding it impossible. Partly because of my ignorance but largely because your rants are mostly incoherent

  10. #30

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    There is no argument, I am just pleading with ppl to take another closer look at this hedging and BOE incident and not assume it is box standard stuff or believe wholesale that was all there is to it. Just wow that ppl are replying mostly to point out that my behavior is a nuisance