Ryan ALM
White Papers
Pension Problem: Future Values
The true objective of a pension is to secure promised benefits in a cost-effective manner with prudent risk. Pension benefit payments are future value numbers. We do not know the future value…
Bond Math… Let THE FORCE be with you!
Defined Benefit pension planseverywhereface serious risk factors: Liquidity Risk The true objective of a pension is to fund liabilities in a cost-efficient manner with prudent risk. Pension liabilities are a...
Cash… A Risky and Costly Investment For Pensions
Pension funds tend to have a cash portfolio, which is usually held by the custodian bank and often has an average maturity/duration of about 3 months. That cash “bucket” is...
What Do Pension Sponsors Want For Christmas?
When asked this question, most pension sponsors would answer lower or stable pension cost and lower volatility on funded status, yet the asset allocation of most pension plans is...
Pension Doctor: Specialist or Generalist?
Pension Doctor: Generalist or Specialist When a person gets sick or has an injurythey go see a doctor. Usually, they prefer to see a Specialist who is the recognized expert...
What’s It All About? Liabilities!
Most institutional assets are required to fund some type of liability objective (Pensions, OPEB, Lottery, Endowment & Foundation) yet liabilities tend to be missing in every function related to assets:...
Bond Yields… Caveat Emptor
Most bonds are priced and traded on some yield calculation. These yield calculations are based on assumptions that are difficult, if not impossible, to achieve. For example: Yield to Maturity...
Operation Home Run
Pension Solution: Operation Home Run The true objective of a pension is to secure and fully fund benefits in a cost-efficient manner with prudent risk . This is best accomplished...
The Pension Crisis of 2000-02
In my 2013 book “The U.S. Pension Crisis” I detailed the causes of the 2000-02 pension crisis where funded ratios deteriorated significantly from a surplus position in the 1990s. This...
How Bonds Can Enhance the ROA
Given the volatility and uncertainty of the financial markets, bonds can provide Pension Plan Sponsors a strategy to mitigate some of that volatility. Bonds, through the certainty of their cash...
What’s Better For a Pension?
Asset returns are uncertain and very volatile. The S&P 500 is a good example. Since 1990 this index has enjoyed 13 years of 20% + growth. Unfortunately, it was accompanied...
Pension Strategy to Reduce Funding Costs by 20%+
The true objective of a pension is to secure and fully fund benefits in a cost-efficient manner with prudent risk . It is a liability and cost objective… it is...