- Macro Economic Perspectives
- Fixed Income Opportunities
- Liability Driven Investing
- Interest Rates
Liability Driven Investing
- Hibernation: Managing a Sleeping Bear
- Go Long for the Taper Touchdown
- Letting Liabilities Drive
- The Unhedgeables
Gary Knapp, Managing Director and Head of Liability-Driven Investment Strategies, Prudential Fixed Income, March 2015
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 in both size and risk.
Gary Knapp, Head of Liability-Driven Investment Strategies, and Michael J. Collins, Senior Investment Officer and Credit Strategist, Prudential Fixed Income, January 2014
In this paper, we take a look at the current interest rate backdrop and how the historical steepness of the U.S. Treasury yield curve provides an attractive entry point into longer duration high quality bonds. We also look at some of the risk/return trade-offs of extending duration under different interest rate and yield curve scenarios.
Gary Knapp, Head of Liability-Driven Investment Strategies, Prudential Fixed Income, September 2011
The third paper in our Liability-Driven Investing series explores the pitfalls of some traditional valuation approaches and what methods plan sponsors can choose to reduce risks and incent their asset managers.
Gary Knapp, Head of Liability-Driven Investment Strategies, Prudential Fixed Income, June 2011
While plan sponsors cannot fully hedge their funded status with high quality corporate bonds, they can get much closer than they are today. Gain a better understanding of what cannot be fully hedged and how that can ultimately lead to a better solution for the plan.