UK Council Pensions Invest 32 Billion in Shadow Lending
UK council pensions hold 32 billion pounds in shadow lending. Regulators warn of risks from opaque valuations as some schemes allocate over 10 percent of assets.
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United Kingdom local government pension schemes have amassed £32B in shadow lending exposure, raising regulatory concerns over opaque valuations and leverage. Nearly half of these funds in England and Wales allocated 10% or more of their portfolios to non-bank debt. The shift exposes retirement savings for thousands of public workers to illiquid markets during a period of rising default risks.
