usiness firms use a financial analysis technique called asset vs. liability management (ALM) to mitigate risk due to a mismatch in their assets and liabilities. A mismatch occurs when assets and ...

Todd Investment Advisors has launched an asset/liability matching strategy. It invests in bonds to match short-dated liabilities--from five to 15 years in duration--and then uses exchange-traded funds ...

Investment in clean energy infrastructure may tick a lot of boxes for life insurers. Matching assets to long-term liabilities without compromising on return potential can be a challenge for insurers ...

Cambridge University Press (www.cambridge.org) is the publishing division of the University of Cambridge, one of the world’s leading research institutions and winner of 81 Nobel Prizes. Cambridge ...

On the go: Soaring inflation may prevent actuaries from being able to match schemes’ underlying liabilities with appropriate assets, with costs set to increase, the Institute and Faculty of Actuaries ...

Liability-driven investing, or LDI, is an investment strategy that focuses on matching assets with liabilities. This strategy is used by pension plans to hedge against market-related risks that could ...

We address a fundamental question in relationship banking: why do banks that make relationship loans finance themselves primarily with core deposits and when would it be optimal to finance such loans ...

This chapter discusses the valuation of assets and liabilities under Solvency II. Given that strategic asset allocation and investment management are key aspects of an insurer’s business, especially ...

British Airways’ New Airways Pension Scheme is the latest large fund to commit itself to infrastructure investment to manage long-term inflation risk. The £8bn NAPS has launched a portfolio of real ...

The financial services profession is generally divided between two camps: those focusing on investment solutions and those focusing on insurance solutions. Both sides have their adherents who see ...