De-risking Pension Funds In A Rising Rate Environment
Defined benefit pension funds have the highest aggregate funding ratio (FR) we’ve seen in years, with some large pension funds being more than 100% funded. In the past, a pension fund with a healthy FR would start thinking about defending its gains by re-allocating some of its assets from stocks to bonds, a de-risking strategy called liability-driven investing, but this assumes that interest rates are equally likely to rise or fall.
With interest rates only slightly above their historic lows and the Fed . . .
This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here
If you are subscribed and having an account error please clear cache and then cookies if that does not work email firstname.lastname@example.org and we will get back to you as quick as humanly possible