Hibernation: Managing a Sleeping Bear
Many asset managers today advocate that plan sponsors consider a risk reduction strategy called "hibernation". But just as glidepaths don't always "glide", hibernation is not a passive strategy, but one that needs to be carefully watched. In this paper, we consider how the interplay between a smarter hibernation strategy and different de-risking tools can allow a plan to slowly wind down.
Managing Pension Risk with Liability Driven Investing
The European Central Bank's (ECB) announcement appears largely designed to further weaken the euro. The ECB aims to add €1.1 trillion in assets, and possibly more, thereby returning the balance sheet to its 2012 high. The program could well be extended, should inflation fail to rise towards the de facto 2% target. (January 2015)
Policy makers typically suggest QE is primarily aimed at strengthening domestic demand. The evidence, however, is mixed and instead the impact of QE on exchange rates seems by far more pronounced. (December 2014)
Prudential Fixed Income to manage new $666.5 million CLO, September 3, 2014Read More