Pension LDI: Cash flow Matching Versus Duration Matching

We are pleased to share with you the latest research piece from Ron Ryan and Ryan ALM. We believe that all DB plans should actively de-risk at least enough of their portfolio in order to defease the next 10-years of the plan’s Retried Lives liability. But, how? As this report will highlight, we think that it makes far greater sense to use a cash flow matching approach than traditional duration matching. We hope that you enjoy Ron’s thoughts on this subject and we encourage you to reach out to us with any questions. We stand ready to assist.

Oh, and based on recent market action regarding the widening of spreads for corporate bonds, now is a particularly good time to act.

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