Pension funds cautioned on equity-bond correlation
Buy-siders need to plug changes into VAR, say risk managers
Asset managers are disregarding the chances of a lasting shift in correlation between bond and equity prices, according to experts, with pension funds particularly unprepared.
Negative correlations have been the theoretical underpinning for investors diversifying their assets for 20 years. While some are optimistic about pension funds' resilience to correlations spiking, saying their liabilities drop more than the value of the stocks and bonds they own, others suggest pension funds are less
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Pensions
Uncharted waters
How pension plans can better equip themselves for a period of economic upheaval. By Matthew Seymour, RiskFirst, a Moody’s Analytics Company
Pensions industry says permanent Emir exemption not enough
European Parliament and UK regulator push for carve-out, but industry unimpressed
Managing pension risk: The UK leads the way
Sponsored feature: Prudential Retirement
Aussie pension funds move into liquid alternative strategies
A popular approach in US and Europe, now Australian schemes are taking note
UK pension changes spell trouble, says IDAD boss
Clive Moore talks offshore structured products and why pensions changes are bad news
Structured product providers eye pension-specific investments
Hopes structured products will soon find a place in pensions
Pension funds weary of interest rates high-wire act
Funds ought to reduce hedge ratio as rates rise, but are scared of acting too soon
