Liability-driven investment is "fundamentally misconceived" because it hedges low interest rates which in fact increase corporate profitability, a radical report finds.
The report - Don't stop believing: The state and future of UK occupational pensions - argued falling interest rates hurt pension schemes because they raise the present value of liabilities but conversely...
Schemes can tap into elevated illiquidity elements by incorporating global investment-grade credit into a liability driven investment (LDI) strategy, says Aon.
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.
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.
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
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.