LDI Banner
Whitepaper

Using LDI Completion Overlays to Reduce Pension Interest Rate Risk

September 30, 2020

While equities have rallied significantly since the lows of the 2008 financial crisis, funded status improvement has been offset by the lower yields used to discount pension liabilities. For corporate pensions considering liability-driven investing (LDI), the risk mitigation of a completion overlay is hard to ignore. It may be easy to dismiss LDI in the current environment given record-low Treasury yields. But plan sponsors should nonetheless consider making plans now so they’ll be ready to use these tools to reduce pension risk going forward.

Download this paper

Richard Fong photo

Richard Fong, CFA

Senior Portfolio Manager

More about this author
David Phillips photo

David Phillips, CFA, ASA, EA

Director, Liability Driven Investment Strategies

More about this author

More to explore