LDI Push to Lower Stock Exposure Reaches Its Destination
The de-risking trend has seen equities cut in half since 2008, to around 30% of assets, and Milliman thinks that’s where it will stay.
The de-risking trend has seen equities cut in half since 2008, to around 30% of assets, and Milliman thinks that’s where it will stay.
LDI strategies allow for passive equity to be replaced by holding ‘cash’ and synthetic equity instruments. But with better funding statuses, are pensions’ derivative positions less necessary?