A holistic look at investing
Physical gilts have generally offered a yield pick-up over equivalent swap-based exposure. Yet this premium has declined over the past two years as pension funds have continued to invest heavily in gilts to match liabilities. Let's consider how much this premium might have to fall for investors to swap bonds for swaps.
For many years there has been much debate around the size of defined benefit scheme deficits and the extent they reflect on the health and sustainability of the schemes. But is there another way of thinking about pension scheme solvency?
It is increasingly clear that running RPI-linked assets versus CPI-linked liabilities can pose material risks to pension schemes. But opportunities to mitigate these risks are also becoming more available.
Are zombie pension schemes a viable option? And if so, how should their investment strategy be set?
Mark blogging about the pensions generation game reminded me of a couple of Brucie bonuses that investors should be on the lookout for: the diversification bonus and the rebalancing bonus. Although they're often confused, they're very different prizes.
What do inflation-linked pension benefit schemes and Texan cowboys have in common? We look at a source of scheme risk that many trustees may not have considered: limited price indexation risk. This could become increasingly important for trustees as their schemes progress along their de-risking glidepaths.
At LGIM’s client conference, pension-related theatricals took place alongside discussions of ‘digital humans’ and the long-term trends dominating the investment landscape.
If your base case is that interest rates will rise faster than is already priced in, how much should you under-hedge? The answer could be less than you think.