Liability Driven Investment

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.

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

The amount of hedged defined benefit (DB) liabilities grew to £741bn by the end of 2015 according to KPMG.

Mitigating the impact of central clearing

BMO Global Asset Management has made two appointments to its liability-driven investment (LDI) team as the firm expects strong growth in the business.

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.

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.

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.

UK pension schemes hedged a record £13.9bn of inflation risk in the first quarter of the year, according to research from F&C.

Listen to our latest Pensions Conjecture debate on Liability Driven Investment