ldi keystone
Whitepaper

Liability-Driven Investing: The Credit Conundrum

December 8, 2020

Liability-driven investing (LDI) exists to align risk exposure between investments and liabilities. It’s common to see a pension’s asset portfolio split into growth assets and LDI assets. The first portion consists of risk assets, which are meant to contribute to improving the funded status of the plan or to cover future increases in liabilities. The second portion is meant to reduce or eliminate the impact of interest rates and credit spreads on a pension’s funded status. 

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David Phillips, CFA, ASA, EA

Director, Liability-Driven Investment Strategies

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