LDI is now a mainstream component of a pension schemes strategy and 2015 marks 10 years of LDI. In those 10 years we have seen some quite significant events – bank bankruptcies and significant (unexpected?) falls in interest rates – and these events are still shaping the LDI market today and in the future.
For pension schemes with LDI this brings a whole new world of topics up for discussion.
Yet surprisingly for such a mainstream component, depending on your data source, only about 25% of pension schemes in the UK have an LDI mandate and so for those “have nots” LDI is not about the nuances or central clearing and discounting, it is simply about getting comfortable with the concepts.
This blog is aimed at both of these groups but with one common goal which is that each post will aim to leave the reader feeling better equipped than when they started reading.
We hope you enjoy and we welcome any feedback or requests.