The third quarter of this year proved to be a stressful period for fixed income and pension managers. In August, the 10-year U.S. Treasury bond tested the lower bound of the 1.50% –3.00% range in which its yield has fluctuated since 2011 as concerns about global growth permeated the market. In addition, communications from the U.S. Federal Reserve’s July rate-setting meeting left investors wondering whether the central bank was committed to further easing. This drove spreads wider and rates lower, but the move in rates dominated and ultimately drove down pension plan discount rates even further.

In this environment, corporate defined benefit pension plan sponsors pursuing LDI generally turn to the U.S. long bond market to hedge long-term liabilities. A detailed understanding of this $3.5 trillion market is critical for crafting an effective investment strategy. That is precisely what this special report aims to do – help you piece together the solution to your pension plan’s LDI puzzle.