Financial crisis whets appetite for LDI by German pension funds
German corporate pension plans turn their attention to interest rate and inflation hedging
An increasing awareness of risk management by multinationals as a result of the recent financial crisis has prompted a wholesale switch to liability-driven investment (LDI) approaches among German corporate pension plans, a trend that regulation is set to increase.
According to actuarial consultancy Towers Watson, the use of inflation hedging by German multinationals has risen by 23% since 2009, with the number of corporates using interest rate hedging also shooting up from 25% to 38% in the
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