How hedging against rising rates with credit—rather than sovereign bonds—can offer a better trade-off between liability-relative risk and return.
Bond yields remain at or near historic lows around the world, leading to a substantial increase in the value of pension plan liabilities.
In the wake of the Global Financial Crisis, all eyes are on dynamic, responsive funding strategies that can deliver long-term goals in a risk-aware way.
The authors discuss sustainable investing, highlighting why there is not trade-off between a focus on sustainability and the maximisation of profit.
UK pension plans concerned about how to invest in a volatile, late cycle environment may want to consider two practices: continue effective rebalancing and don’t postpone further duration hedging in anticipation of rising rates.
The US recovery is now the longest on record. Nobody knows exactly how much longer this expansion will last.
Hedged equity (or options overlay) strategies can provide higher risk-adjusted returns over broad-based equity indexes, in part by using options to minimize the impact of market disruptions and downturns.
The coronavirus outbreak has led to a massive global demand shock. A plunge in economic activity, probably larger than a typical recession, has likely begun.
Measuring book yield correctly