Liability Driven Investment

Mitigating the impact of central clearing

BMO Global Asset Management has made two appointments to its liability-driven investment (LDI) team as the firm expects strong growth in the business.

Interest rate and inflation hedging activity dropped by 24% and 27% respectively in the third quarter, according to BMO Global Asset Management's liability-driven investment (LDI) survey.

Individual annuity sales at Legal and General (L&G) have fallen by more than half this year, and its bulk annuity business has failed to pick up the slack, figures show.

LDI has been a helpful tool for schemes looking to de-risk. But does the emerging use of illiquid assets mean LDI could become a hindrance to achieving buyout? Stephanie Baxter investigates.

UK pension schemes hedged a record £13.9bn of inflation risk in the first quarter of the year, according to research from F&C.

Listen to our latest Pensions Conjecture debate on Liability Driven Investment

A 90% surge in interest rate hedging and a 14% increase in inflation hedging drove the value of scheme liabilities hedged in the third quarter of the year above £22bn, research shows.

A new paper by Con Keating, head of research at Brighton Rock Group, called into question the validity of liability driven investing. But industry experts believe LDI, while not perfect, is one of the best solutions pension funds have. Iain Morse reports...

UK - Liability-driven investment is "fundamentally misconceived" because it hedges low interest rates which in fact increase corporate profitability, a radical report finds.