Many institutional investors will be obliged to make payouts in the future, some of them for decades. A large, permanent increase in the resulting liability, or even a substantial fluctuation in that liability’s value, could threaten their solvency. We can help investors manage these risks.
LDI is the generic name for the methods investors use to reduce the risks they face in relation to changes in the value of their liabilities. Generally this involves the use of corporate bonds, government bonds interest rate swaps, supported by collateral management. The Group offers a bespoke approach that is affordable to institutional investors. We typically seek to match the performance our clients accounting liabilities closely, while recognizing the need to target some outperformance of liabilities through time.
Because our LDI team of actuaries, derivatives traders, investment consultants and back-office operators is fully integrated, with everybody knowing every aspect of the team’s work as a whole, there are no gaps in our service. The cogs in this mechanism all mesh. This combination of expertise makes us more nimble responding to changes in the market and in client needs, better informed when conversing with clients, and more responsive to our clients’ queries.