An alternative risk premia strategy is itself more diversified than a diversified growth fund or an all-equity portfolio.
What investors should consider
The key political, macro and credit risks that insurers may want to address in 2019.
Bond yields remain at or near historic lows around the world, leading to a substantial increase in the value of pension plan liabilities.
While tariffs remain a concern, the key issue is the degree���which we deem moderate���of U.S. recession risk. The current global backdrop makes the U.S. dollar unlikely to strengthen. Earnings growth expectations are modest, valuations are undemanding
How hedging against rising rates with credit���rather than sovereign bonds���can offer a better trade-off between liability-relative risk and return.