When the leverage used to purchase investments falls below a certain value, this results in a margin call, which forces the invester to close the trade (usually at a huge loss).
So, since the bond market is no longer worth diddly shit, it's value is not enough to act as collateral for other investments, hence margin calls and impending bankruptcy. That's why the BoE propped up the bond market, to allow the pension funds to start getting rid of their liabilites before the entire arse falls out of the market.
When the leverage used to purchase investments falls below a certain value, this results in a margin call, which forces the invester to close the trade (usually at a huge loss).
So, since the bond market is no longer worth diddly shit, it's value is not enough to act as collateral for other investments, hence margin calls and impending bankruptcy. That's why the BoE propped up the bond market, to allow the pension funds to start getting rid of their liabilites before the entire arse falls out of the market.
I think.