Liability Driven Investment
Current credit spreads well suited to LDI despite Covid-19
Schemes can tap into elevated illiquidity elements by incorporating global investment-grade credit into a liability driven investment (LDI) strategy, says Aon.
SSGA 'revolutionises' pooled LDI sector with funds launch
State Street Global Advisors has created a solution to help small to medium-sized defined benefit (DB) schemes access benefits typically only available for larger segregated mandates.
Why peak LDI could be further off than we think
Predictions that LDI flows could peak as soon as 2021 have led to hopes of higher gilt yields. However, Stephanie Baxter finds there are many variables at play.
Catch-22 and the rise of cash-driven investing
Schemes are becoming cashflow negative at a time they can ill-afford any drag on investment returns. Sorca Kelly-Scholte and Maria Ryan look at solutions to this Catch-22
Is the gilts market reaching breaking point?
Structural imbalances in the gilts market have worsened since the central bank's QE programme faced major setbacks. Supply is squeezed and prices are distorted, pushing down yields yet again. Stephanie Baxter asks if we should be worried.
Is LDI still working?
While LDI has been a helpful risk management tool it must adapt to a world where yields have yet again fallen to record lows and prospects for growth assets have deteriorated. Stephanie Baxter reports
LDI activity swells by 13% in a year
The amount of hedged defined benefit (DB) liabilities grew to £741bn by the end of 2015 according to KPMG.
Reducing the impact of central clearing on LDI strategies
Mitigating the impact of central clearing
BMO expands LDI team with hires from LGIM and Towers Watson
BMO Global Asset Management has made two appointments to its liability-driven investment (LDI) team as the firm expects strong growth in the business.
LDI activity falls by more than a quarter in Q3
Interest rate and inflation hedging activity dropped by 24% and 27% respectively in the third quarter, according to BMO Global Asset Management's liability-driven investment (LDI) survey.
L&G annuity sales plummet
Individual annuity sales at Legal and General (L&G) have fallen by more than half this year, and its bulk annuity business has failed to pick up the slack, figures show.
How the evolution of LDI could hinder buyouts
LDI has been a helpful tool for schemes looking to de-risk. But does the emerging use of illiquid assets mean LDI could become a hindrance to achieving buyout? Stephanie Baxter investigates.
Scheme inflation hedging hits record £14bn high
UK pension schemes hedged a record £13.9bn of inflation risk in the first quarter of the year, according to research from F&C.
Pensions Conjecture: Liability Driven Investment
Listen to our latest Pensions Conjecture debate on Liability Driven Investment
Asset swap activity pushes liability hedging to record levels
A 90% surge in interest rate hedging and a 14% increase in inflation hedging drove the value of scheme liabilities hedged in the third quarter of the year above £22bn, research shows.
LDI: an imperfect investment solution
A new paper by Con Keating, head of research at Brighton Rock Group, called into question the validity of liability driven investing. But industry experts believe LDI, while not perfect, is one of the best solutions pension funds have. Iain Morse reports...
LDI 'fundamentally misconceived' - report
UK - Liability-driven investment is "fundamentally misconceived" because it hedges low interest rates which in fact increase corporate profitability, a radical report finds.
LDI 'fundamentally misconceived' - report
Liability-driven investment is "fundamentally misconceived" because it hedges low interest rates which in fact increase corporate profitability, a radical report finds.
LGIM launches LDI platform
Legal & General Investment Management has launched a pooled fund platform that offers pension schemes a flexible version of liability-driven investment.
LDI market becoming an oligopoly
UK - The £240bn ($390bn) liability-driven investment market is developing into an "oligopoly" with just three providers managing more than 80% of assets, research finds.
Lloyd's Register scheme to overhaul investment focus
The £650m Lloyd's Register Superannuation Fund Association is to undertake a wholesale review of its investment strategy and mandates.
Schroders pushes further into LDI market with five funds
Schroders has launched five synthetic gilt funds to hedge against interest and inflation risk as it seeks to push further into the growing liability-driven investment market.
New York Life launches near-term LDI strategy
New York Life Investments has launched the Guaranteed Interest Pension Account (GPA) to help corporate plans better manage their near-term liabilities.
Swap drop - interest rate hedges plummet 24%
Interest rate hedges by pension funds fell by 24% over the first quarter of the year, hit by a difficult swap market and stale funding levels, F&C reports.
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