Should investors fear an erosion of the illiquidity premium?
Learn how J.P. Morgan creates customized plans to help clients implement a liability driven investment (LDI) strategy.
Caught our eye: UK pension buy and maintain strategies could bring demand pressure to sterling corporate bonds
In an already tightly held market for sterling corporate bonds, even modest moves by UK pension funds to adopt buy and maintain strategies could create stiff competition for these assets.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
We emerged with a cautious near-term view from our latest quarterly strategy meeting in early September. In our base case scenario, the global economy is expected to narrowly avoid recession and continue to grow, albeit much more slowly.
An alternative risk premia strategy is itself more diversified than a diversified growth fund or an all-equity portfolio.
In lower cost, liquid vehicles, alternative risk premia strategies can strengthen a risk-return profile.
John Bilton, Head of Global Multi-Asset Strategy, discusses the themes of our 2017 Long-Term Capital Market Assumptions.
Strategies typically used by insurers can help European pension funds build stronger fixed income portfolios.