Steve Hodder, a partner at LCP, said the proportion of the gilt market owned by defined benefit schemes was “quite frightening” - particularly given the number of DB schemes closing and the large amount of buy-out activity

State Street has described the current environment as a “Goldilocks” scenario for emerging market debt with the US dollar in a slump and the Federal Reserve expected to cut rates

Three large European investors drove higher net inflows into corporate bonds and credit in the second quarter of this year, even as compressed spreads dampened UK pension scheme appetite for investment-grade credit.

Investment consultants are advising UK defined benefit pension schemes to conduct wider investment strategy and governance reviews that go beyond their liability-driven investments as the Bank of England expands its emergency bond market support ahead of the end of its gilt-buying programme on Friday.

This broad overview of the investment trends MandateWire tracked during the second quarter of 2022 is based on surveys of 852 institutional investors from across Europe, North America, the Asia-Pacific, and the India, Middle East and Africa regions, with more than $35.7tn in combined assets under management.