Pensions - Articles - L&G unwinds collateralised debt obligation tranche structure

 There was no transaction costs associated with the restructuring and Solvency II capital will reduce by circa £100 million. The future interest payments on the unwound CDO’s will continue to be paid to Legal & General until 2017/18.
 
 Mark Gregory, Group Chief Finance Officer said: “This unwinding of the £1 billion of CDO’s has been executed effectively, and delivers £100 million of capital efficiency. It represents a further step in simplifying our asset strategy as we continue to focus on delivering better risk adjusted returns for shareholders and benefits to pensioners.”