Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
Equities continue to look attractive relative to fixed income, and could very well move higher in the short-term given firmer economic data and a Fed on hold.
This week the House of Commons demonstrated that a clear majority of Members of Parliament (MPs) are not willing to leave the EU without a deal.
With global recessionary risks rising, we provide a framework to help UK pensions prepare for near-term risks that could challenge the fulfillment of their sponsor covenants.
Using our 2019 Long-Term Capital Markets Assumptions and our estimate of the average current pension profile, we projected forward the buyout position of the average UK pension scheme.
Many UK defined benefit (DB) pension funds are well along on their de-risking journey. What lies ahead now is relatively unexplored territory. Here we set out things to consider in building a runoff investment strategy.
Allocating to multi-asset credit managers, who seek out alpha opportunities without constraint, can improve risk-adjusted returns for the average DB plan.
We further discuss how institutional investors can protect their portfolios from late cycle headwinds and rising volatility so that they can be positioned for long-term success.
The coming week is a very big week for sterling investors since the Chancellor will present a new statement on fiscal policy and there are a series of votes in the House of Commons to break the Brexit impasse.