30 September 2022

Beware of Financial Engineering!

When Times are good it is easy to forget Warren Buffett's famous dictum: "Derivatives are weapons of mass destruction". Recent turmoil in the UK Gilts market demonstrated that Financial Engineering (better called alchemy) has its limitations. And how much did the Pension trustees really understand when LDI was proposed as the magic solution? It just shows that the Quality of your Advisers is crucial for Investment success.