Is the time right for long duration?"Amid continued low interest rates and ongoing quantitative easing, many pension plans are still considering longer-duration investment strategies to reduce the mismatch between their plan's assets and its liabilities," according to Gary Knapp, managing director and head of liability driven investment strategies for Prudential Fixed Income.
"For many plan sponsors, we believe simply extending the duration of their existing fixed income allocation from intermediate term to longer term could be a move in the right direction," adds Knapp, co-author of a new white paper, "Is it Still a Good Time to Extend Long Duration Strategies?"
In the paper, Knapp joins Prudential Fixed Income Senior Investment Officer Mike Collins to provide an overview of the risk and return trade-offs of extending duration under several different interest rate and yield curve scenarios.
Want to learn more about liability driven investing? Read the white paper. Want to speak to Gary? Contact Theresa Miller.