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The number £1.5tn is big — at least in a UK context. It is 40 per cent of the UK institutional asset management market, two-thirds of gross domestic product and about the size of the government’s total debt, after stripping out bonds held by the Bank of England. This is the quantum of liabilities held by UK pension funds that have been hedged with so-called Liability Driven Investment trades, according to the asset management trade body The Investment Association. LDI is big business, having more than tripled in size over the past decade, and the reason is simple — it helps funds manage the risks in meeting their pension promises for members, partly through derivatives. But now funds are facing calls from counterparties to put up collateral to fund those trades. The sums are potentially huge and asset sales to meet the calls could have a knock-on effect to markets such as equities.