Bank of England urges pension funds to be ready for bigger gilt market shocks

The Bank of England is pushing pension funds to prepare for a bond market shock more than twice as severe as what they were previously tested against in an effort to avoid a repeat of last year’s gilt market turmoil.

The recommendation for how to mitigate the risk of future blow-ups was included in the BoE’s quarterly financial stability update from the Financial Policy Committee, released on Wednesday.