Capital-Market-Aware LDI: Actively Navigating the De-Risking Journey

摘要

Corporate plan sponsors with underfunded defined-benefit plans have faced headwinds from falling interest rates and rising pension liabilities. Extensive survey data confirm that for a majority of plans, pension portfolios have struggled to keep up with their respective liabilities, particularly when the effect of contributions has been netted out of funded-status changes. It is likely that, contributions aside, plan-funded status would have declined for many plan sponsors.