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Litigation risk arising from recent LDI related disruption in the UK gilt market

Simon Hart, Daniel Hemming, Charlotte Henschen and Tim Potts of Reynolds Porter Chamberlain consider the litigation which may result from the widely publicised disruption experienced in the UK gilts market in recent weeks, including potential disputes over whether financial covenants in derivative contracts were breached, as well as litigation against pension trustees ultimately responsible for the investment decisions taken on behalf of a fund.