PiRho has produced three 5-minute cartoons to help trustees determine an appropriate degree of liability hedging. One of the most important investment decisions trustees have to make is deciding their hedging ratio. Often this decision, is posed as an all or nothing decision; with some saying eliminate all “un-rewarded risks” and others saying its “madness to buy gilts at current levels”. PiRho’s three cartoons cover the theory, practice and a framework to help trustees think strategically about this important subject.
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