The newsletter of GBRW Expert Witness

November 2022


On September 28, Hurricane Ian made landfall on the Gulf Coast of Florida. This large and destructive Category 4 hurricane caused widespread damage estimated at more than $50 bn across western Cuba and the south-eastern United States.

Closer to home, a financial storm of comparable ferocity was developing in UK and international financial markets in the wake of the ill-fated Truss-Kwarteng “mini-budget”

Both events had immediate and dramatic impacts, but both also have longer-term costs that will accrue over months if not years. Our newsletter this month looks at two aspects which will be of concern to participants in the financial markets and their legal advisers.

In the first of our articles, Sinead Leahy, Managing Director of pensions advisory and investment management specialist Cardano, examines the winners and losers in the liquidity crisis for Liability Driven Investment (LDI) strategies triggered by the extreme interest rate rises in the UK’s long-dated gilts market.

Many people will not previously have been familiar with the term LDI and Sinead’s article provides a helpful and accessible introduction to the subject and its ramifications.

One of the consequences of the September crisis was a rapid increase in residential mortgage interest rates, reviving unpleasant memories for those of us involved in this market in the early 1990s. In our second article, Robert Owen, who recently retired as Managing Director - Mortgages & Bridging at United Trust Bank, asks “Crisis? What crisis?”.

Experience shows that disruptions in the financial markets like the ones we have just seen have second- and third-order effects which take time to play out – and this at a time when we already have no shortage of other upheavals.


Paul Rex Paul Rex

Managing Director,

GBRW Expert Witness
November 2022

Our pool of experts in banking, insurance, investments, trade finance and commodity trading equips us to deal with disputes arising from sudden changes in interest rates, exchange rates and investment yields. We continue to add to our team and welcome enquiries related to the areas mentioned above.


GBRW Expert Witness Limited

Paul Rex, Jeremy Denton-Clark, David
Croft, Tim Dowlen, John Turnbull

Level 17, Dashwood House
69 Old Broad Street
London EC2M 1QS
T: +44 (0) 20 7562 8390

Singapore office:

Martin Edwards, Director, Asia
T: +65 9623 1657

Athens office:

Emmanouil (Manolis) Skourtis
T: +30 693 680 2792

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