Hedging solutions (TT Apr07 p16-17)

In the third article in this series, Ian Cooper, Sian Hurrell and Guy Whitby-Smith of the Pension Solutions Group, RBS Global Banking & Markets, look at some of the key liability hedging solutions for pension schemes and consider some implementation issues.

While the concept of liability hedging is now widely accepted as a key part of any asset liability study, implementation is still surrounded by hearsay and uncertainty. This should not be the case: a coherent implementation strategy for liability hedging can be both transparent and straightforward.