Retirement Plan Perspectives Video
March 14, 2017 — Interest rate volatility can create challenges for many types of investors. This is especially true for DB plans with cash-flow liabilities that go well beyond 30 years, which is the practical limit of maturities in the cash bond market.
- DATE: March 14, 2017
- TYPE: Video
Retirement Plan Perspectives: The Mechanics of Hedging Long Duration Liabilities
The primary goal of liability-driven investing (LDI) is to hedge liability cash flows. On the surface, achieving that goal is relatively simple: analyze the projected cash flows
Your Pension Might Not Be As Well Funded As You Think
Is your pension plan as well funded as you think? In this piece, we address this simple question by discussing how different valuation methodologies can impact plan health.
Credit Spreads Pose Challenges for Liability-Driven Investments
In 2015, despite higher discount rates, and therefore lower liabilities, the aggregate funded status of America’s largest defined benefit plans increased by only 1%-3%.