Fixed Income

Funded status for U.S. pension plans improved in 2Q by over five percentage points...

Adding durable, low-cost external leverage to lower-volatility assets via the FHLB system can be an attractive way to enhance risk-adjusted return potential versus owning higher-volatility assets with more embedded leverage directly on insurance company balance sheets.

Experienced active managers can capitalize on opportunities that fall outside their benchmarks and can manage unwanted concentrations. This has historically resulted in relatively high success rates in generating alpha.

1Q23 was marred by significant volatility in the banking sector...

Political brinksmanship over the debt limit is poised to push the Treasury to the edge. If 2011 is a guide, T-bill discounts could get wider into June, potentially causing ripple effects across markets.

Funding ratios rose again in 2022, putting plan sponsors in another surprisingly strong position. But with critical decisions looming, de-risking and diversification are paramount.

June’s decline in funded ratios reinforced the need for pension plan sponsors to de-risk portfolios through higher fixed income allocations.

Improved funded status is driving conversations around the inclusion of non-traditional fixed income assets in ALM modeling