The gist being that pension funds hedged with derivatives that are dependent on small movements of bond rates. However, since the rates increased quickly, the pensions needed to sell more bonds to fund their margin calls, which further caused a need to sell more bonds. They started their own death spiral.
The gist being that pension funds hedged with derivatives that are dependent on small movements of bond rates. However, since the rates increased quickly, the pensions needed to sell more bonds to fund their margin calls, which further caused a need to sell more bonds. They started their own death spiral.