Fundamentally, pensions are a FUTURE liability on CURRENT assets. So the primary goal of the fund managers at these pension funds is to ensure that size and mix of current assets can meet future liabilities. One of the…
1) Pension funds (and other institutional investors) own government bonds. 2) They have also purchased risk/hedging products and posted these bonds as collateral. 3) As interest rates rise, the value of these bonds…
Fundamentally, pensions are a FUTURE liability on CURRENT assets. So the primary goal of the fund managers at these pension funds is to ensure that size and mix of current assets can meet future liabilities. One of the…
1) Pension funds (and other institutional investors) own government bonds. 2) They have also purchased risk/hedging products and posted these bonds as collateral. 3) As interest rates rise, the value of these bonds…