Pension Risk Transfer Within the past decade, low interest rates have nudged many pension plan sponsors to augment their traditional fixed income strategies with vehicles offering higher returns. However, this came with a few downsides. Namely, the investment transactions were often more complicated, the accounting and reporting burdens grew heavier and the risk profile of the private, alternative, or other non-bond investments could increase markedly with changes in the economic environment. It’s not hard to guess what this has engendered in the last few years.
The pension risk transfer (PRT) market has surged as sponsors look to cut costs, de-risk, […]
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