Our offerings are designed to evolve with the changing needs of the plan, from long credit and capital efficient rates strategies to end-game solutions such as hibernation and pension risk transfer services.
What themes have we been seeing among corporate pension plans?
Matt Nili, Managing Director and Head of U.S. and Canada Liability Driven Investing (LDI) provides an update on recent themes we have been seeing among corporate pension plans.
Why BlackRock for LDI?
Our LDI platform provides defined benefit plan sponsors with the power and flexibility of one of the most comprehensive fixed income businesses in the world, combined with proprietary asset-liability focused technology.
Custom liability expertise
An expansive platform to create an optimal strategy tailored to navigate each client’s unique situation, sensitivities and objectives.
Technology
LDI investors can benefit from our risk management technology through Aladdin systems, tools and reporting.
Investments
We offer solutions for LDI investors looking at both diversifying credit investments and capital-efficient rates strategies.
LDI custom solutions
BlackRock’s flexible platform seeks to deliver a range of custom LDI solutions to meet client needs.
All potential solutions will start with an in-depth analysis of a client’s liability profile, including an analysis of sensitivity to both Treasury rate and credit spread movements.
We customize solutions to account for a number of client specific aspects, including:
- Custom asset-based benchmarks that approximate the duration and curve profile of the liability
- Liability cash-flow based benchmarks, where the portfolio allocation is monitored over time versus a client’s unique cash flow stream
- Completion management, where the portfolio allocation can “bridge” the gap between existing fixed income portfolios and a client’s unique liability cash-flows
As a pension plan moves through the plan lifecycle, we aim to offer thoughtful design, implementation, and monitoring to meet custom client needs. Custom solutions can also offer liability relative reporting to monitor the performance of assets to the underlying liability. For more information, we encourage a discussion with your BlackRock relationship manager and the LDI client PM team.
Latest insights from the LDI team
The latest thinking on Liability Driven Investing and Fixed Income Markets
U.S. LDI Pension MarketWatch
Read our latest Monthly LDI Pension MarketWatch where we look at estimated average funded status and monthly market moves including treasury yields, corporate credit and inflation markets.
BlackRock team
We believe our size allows us to invest in people and technology, creating comprehensive global coverage and thought leadership across regions.
BlackRock has a dedicated LDI team that develops client solutions in partnership with our portfolio management teams across our fundamental, systematic and index platforms.
