All Liability-Driven Investments articles
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White papers
Private Credit: Barbarians inside the syndicated loan gates
In the syndicated loan market—during times of borrower distress—documentation loopholes are allowing majority lenders to disproportionately benefit at the expense of minority holders. This practice, known colloquially as “lender-on-lender violence,” presents a significant challenge to the sector. The menace is growing by the day.
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White papers
IG Credit: Finding Value in a More Stable Environment
Record-high yields and supportive fundamental and technical factors continue to present opportunities in IG credit amid stabilizing spreads. Slowly declining inflation and the U.S. economy’s ability to grow despite elevated real interest rates—the drivers of the U.S. Federal Reserve’s (Fed) current wait-and-see stance—have created a highly favorable environment for investment grade (IG) credit.
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White papers
Creditor-on-creditor violence in Europe: Fertile ground or safe harbour?
Roger Lawrence, Head of Legal (Special Situations and Liquid Credit) at Alcentra, believes debt investors in Europe are better insulated than the United States against the risk of losing value to some of the more aggressive tactics seen today, informally known as “creditor-on-creditor” violence.
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White papers
On the Curve Carries On: Investing in Intermediate Corporate Fixed Income
Last year we highlighted the relative attractiveness of the intermediate part of the corporate curve. And a year later, we believe we continue to see value in the intermediate corporate credit space. In this paper, we highlight the potential opportunities for investors amidst the current valuations in high grade fixed income strategies across the curve.
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White papers
Looking beyond traditional LDI instruments as de-risking gathers steam
In 2022, we saw one of the most unprecedented movements in global financial markets in modern history. A combination of global geopolitical problems and supply-demand imbalances of goods and services due to the pandemic left the Federal Reserve (Fed) with no option but to try and slam the inflationary brake by hiking short-term interest rates to stop the economy from overheating.
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White papers
Don’t let the yield curve flatten your liability-driven investing (LDI) portfolio
The Treasury yield curve’s long end is unusually flat & may steepen. This may be favorable for many liability-driven investing (LDI) portfolios, for now. However, here’s why LDI curve positioning should be monitored over time.
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Video
Let’s Get Physical: Unlocking Real Assets for Liability-Driven Investors
While many financial concepts and securities can sometimes feel abstract, real assets are refreshingly tangible. As investments that enable the everyday functioning of society, real assets have intrinsic value and typically generate stable, predictable cash flows that can act as an inflation-hedge. These qualities mean real assets are increasingly important sources of portfolio diversification.
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White papers
Adopting An LDI Approach Throughout The Investment Value Chain
The insurance business model is fundamentally based on underwriting and managing risks: insurance companies are contractually bound to meet specific obligations and as such structurally driven by liabilities.
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White papers
Liability Aware Investing
Our purpose at LGIM is to carefully manage the risk that pension funds need to take in order to pay pensions. Over the past 15 years we have become the UK’s largest LDI manager and currently help 32% of all DB schemes1 manage their major risks (inflation and interest rates) with LDI strategies. We have also been helping many schemes use different strategies to bridge their funding gaps.