Hooray, LDI Is Progressively Making Corporate Pension Portfolios Less Risky
Liability-driven investing has made great strides toward its goal of lowering the risk for corporate defined benefit plans. With the advent of under-funded pension programs, LDI has emerged as the most widely used antidote. The idea is that, by de-risking portfolios, plan managers can prevent any further erosion of their assets’ value and at the same time inch back to the fully funded level (their ability to match obligations to participants). And it looks as if many are pulling...
