🇦🇺Australia
LDI Collateral Calls
1 verified sources
Definition
Unfunded hedges in ALM require collateral during rate moves, forcing asset sales or contributions.
Key Findings
- Financial Impact: AUD millions in collateral for swap MTM losses (no cash offset from liability gains)
- Frequency: During rate volatility events
- Root Cause: Partial funding of LDI positions
Why This Matters
The Pitch: Pension Funds in Australia 🇦🇺 face AUD millions in collateral demands from poor LDI matching. Full funded LDI automation prevents liquidity crunches.
Affected Stakeholders
Treasury Manager, Investment Committee
Deep Analysis (Premium)
Financial Impact
Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.
Unlock to reveal
Current Workarounds
Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.
Unlock to reveal
Get Solutions for This Problem
Full report with actionable solutions
$99$39
- Solutions for this specific pain
- Solutions for all 15 industry pains
- Where to find first clients
- Pricing & launch costs
Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
ALM Modeling Delays
20-40 hours per quarterly ALM review at AUD 500/hour = AUD 10,000-20,000
Poor ALM Decisions
AUD 25% excess contributions for underfunded plans (e.g., 80% funded requires 125% levered assets)
Fehlentscheidungen bei Asset-Allokation durch ungeeignete aktuariellen Annahmen
Estimated opportunity cost of 0.5–1.0% of assets per annum from suboptimal asset allocation in a AUD 100–500 million DB fund, i.e., AUD 0.5–5 million per year, cumulating to AUD 2.5–25 million over 5 years.
Fehlentscheidungen bei Rentenplanung durch falsche Inflations- und COLA-Annahmen
Quantified (logic-based): A 1 percentage point understatement of effective COLA over 20 years on a AUD 30,000 p.a. income target creates ≈AUD 6,000–7,000 per member real purchasing power gap; at 50,000 members this is ≈AUD 300–350 million equivalent mis‑estimation of retirement income needs over the liability horizon.
Funded Status Reporting Penalties
AUD 10,000+ per breach (ATO administrative penalties up to AUD 18,000 for entities; typical 20-40 hours/month manual reporting)
TBAR Lodgement Delays
AUD 5,000-15,000/year in GIC (15.5% pa on shortfalls) + 20 hours/quarter manual delays
Request Deep Analysis
🇦🇺 Be first to access this market's intelligence