Скачать или смотреть Liability-Driven Investment (LDI) Meaning, Examples of Strategies

Liability-Driven Investment (LDI) is investing in assets that can generate cash to pay for financial obligations. These investments aim to match assets with liabilities and minimize risks such as those related to interest rate fluctuations and market volatility. Types of liability-driven investments include cash flow matching and duration matching. Both individual and institutional investors can use LDI strategies to ensure sufficient cash flow to meet liabilities. LDI strategies sometimes involve the use of equities, but they generally focus on managing risk to produce consistent income. Liability-driven investments are typically lower in returns compared to riskier investments, but they provide a more secure way to meet specific financial obligations.