By: Russ Kamp, CEO, Ryan ALM, Inc.

On April 1, 2026, I produced the post below. It wasn’t an April Fool’s Joke then and it hasn’t gotten any funnier since!

I stated that “the greatest risk managing bonds is interest rate risk. Given both geopolitical (Iran, Taiwan, Ukraine) and economic risks (oil, inflation, interest rates), now is the time to significantly reduce risk within your fund, whether that be a DB pension or E&F.” I added, “Why continue to ride active fixed income through these uncertain markets? One can use a cash flow matching (CFM) strategy to SECURE and fund net liabilities chronologically well into the future. In the process, interest rate risk is eliminated as future benefits and expenses are not interest rate sensitive.”

Well, we are almost 6 months removed from that post, and U.S. oil prices continue to rise, inflation continues to be sticky, and interest rates have been soaring with the yield on the U.S. 10-year Treasury note up another 70 bps since 3/31/26. As a result, active core fixed income managers continue to struggle.

As rates continue to rise, they are more likely to destabilize other markets, including U.S. equities. Is your fund prepared for this potential outcome? Bring some certainty to the management of your pension plan or E&F. Convert your “active” core fixed income to a cash flow matching (CFM) mandate. In the process you will SECURE the promised benefits, extend the investing horizon for the residual return-seeking assets, and improve the liquidity needed to meet the monthly obligations.

Please don’t wait another six months. Your funded status may bear the consequences of inaction.

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