LDI: Addressing the Liability Challenge

The interest rate environment over the past several years has made plan sponsors aware that the duration mismatch between their assets and liabilities poses a significant risk to the solvency of their plans. This mismatch can be addressed by pivoting from an asset-only to an asset-liability focus. In this article, Goldman Sachs Asset Management explores three approaches that can help plan sponsors achieve greater awareness of their pension liabilities: immunization, extending duration and a total portfolio solution.

>> LDI: Addressing the Liability Challenge, July 2007 [PDF, 36 KB]