By: Ryan ALM, Inc

ASOP 4 requires pricing liabilities (as an adjunct to funding requirements) at yields for Low Default-Risk Obligations (LDROM) that are reasonably consistent with cash flow matching liability cash flows. Ryan ALM feels strongly that only two discount rate choices meet these new rules: U.S. Treasury STRIPS and ASC 715 yield curves.

Ryan ALM is one of few vendors that supply both STRIPS and ASC 715 discount rates. We’ve recently posted a research piece on ASOP 4 on our website at RyanALM.com. Please don’t hesitate to contact us for more info and to explore how Ryan ALM can assist you with this new requirement.