When Good Tools Are Used Inappropriately, Bad Things Happen

When Good Tools Are Used Inappropriately, Bad Things Happen

When Good Tools Are Used Inappropriately, Bad Things Happen No, all derivatives are NOT the same Derivatives are a tool, nothing more, nothing less.  Just like any tool, if used inappropriately, they can cause more harm than good.  Derivatives, such as options on...
Innovative Investment Strategies in Volatile Times

Innovative Investment Strategies in Volatile Times

Innovative Investment Strategies in Volatile Times We find ourselves in difficult times. The global effects of COVID-19 have wreaked havoc on investment markets, on daily life, and on institutional investment pools such as pension funds and endowments. Treasury yields...
Improving Expected Returns: Corporate Defined Benefit Plans

Improving Expected Returns: Corporate Defined Benefit Plans

Improving Expected Returns: Corporate Defined Benefit Plans Many corporate defined benefit pension plans utilize interest rate derivatives and/or Treasury STRIPS to manage interest rate risk. They also typically have large allocations to active fixed income managers...
Pension Investing – Why Equity Derivatives Now?

Pension Investing – Why Equity Derivatives Now?

Pension Investing – Why Equity Derivatives Now? Equity returns of 15% or higher would usually be cause for celebration among corporate pension plan investors. However, despite these strong returns, many plan sponsors have seen a decline in their funded ratios...
Target Date Funds: Three Things to Consider

Target Date Funds: Three Things to Consider

Target Date Funds: Three Things to Consider   Download a PDF version of this article… Target Date Funds (TDF) have become increasingly important to the retirement security of 401(k) investors. As with any investment option, plan fiduciaries have a duty to...