LDI Annual Review: 2023
A third consecutive year of improved funded status for U.S. pension plans, IBM re-opens its DB plan, and the importance of diversifying and de-risking.
A third consecutive year of improved funded status for U.S. pension plans, IBM re-opens its DB plan, and the importance of diversifying and de-risking.
Next year’s alts themes are pension funds’ move into private credit, the IRA-driven appeal of renewables infrastructure debt, and big opportunities in mortgage derivatives.
With attractive yields, robust covenant protection, and a surprising amount of liquidity, investment grade private credit is a growing favorite of both investors and borrowers.
Sponsors have waited over a decade for rates to rise and funded status to improve. Although both have now occurred, pushing most plans over 100% funded, many still carry elevated allocations to equities and other risk-seeking assets. Here is why de-risking is now not just beneficial, it’s mission critical.
Funded status improved once again for S&P 500 pension plans, rising for the fourth consecutive quarter to 108.7%—the highest level since 2007.
Strong funded ratios and higher interest rates are prompting many corporate pension plan sponsors to shift assets to LDI strategies. Hear from our LDI experts, Oleg Gershkovich and Brett Cornwell, CFA, as they share their thoughts on why now is the right time to de-risk.
Strong funded ratios and higher interest rates are prompting many corporate pension plan sponsors to shift assets to LDI strategies. If you’re still waiting, consider a hedging portfolio built on public corporate credit, complemented with non-traditional hedging assets.