A pooled solution

Liability-driven investment

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Depending on who's doing the marketing, liability-driven investing is either brand new or old hat. What can be agreed upon is that asset managers and investment banks are devoting significant resources to developing and marketing new products to help pension funds better match their assets and liabilities. The term liability-driven investment (LDI) has been propelled into the vocabulary of asset managers and banks over the past 18 months by pension funds' deteriorating funding levels brought