@BirmaBrite the pensions thing is complicated - the Pensions Regulator actively encouraged companies to hedge their defined benefit schemes with LDIs (liability driven instruments), and because the scheme is hedged, the rise and fall of interest rates doesn’t actually impact the funding of the scheme - so the Professor is correct - overall, the scheme funding is not affected. In fact, there are some advantages to higher rates.
However, the issue is one of liquidity rather than funding which absolutely is a problem - it’s not just pension schemes, it’s companies that have defined benefit schemes, and who hedge them (which is the right thing to do !). The volatility in gilts (higher yields, lower value) and meant that pension schemes suddenly had to hand over cash to plug the collateral/security gap and many schemes did not have the liquid assets to sell off at short notice. To raise cash they would’ve sold equity assets, causing a market crash and subsequent vicious circle. Hence why the BoE stepped in.
So I agree that pension funding is not an issue, but cash liquidity definitely is.
@Flapjacker48 , I do agree with both your posts, I think it’s difficult for Truss though given she campaigned on this vision, which was flawed in current times I think. I’m an accountant too, and I find it hard ! I would still vote Tory because I don’t think Labour can deliver anything better in the current environment - Covid and Ukraine are basically uncontrollable and are the without doubt the key factors driving the economy at present - it’s definitely not business as usual.