This working party aims to help members gain a better understanding of the issues the industry faced in autumn 2022, where those members may work with clients employing LDI strategies and other derivatives, but are not themselves experts on the matters.

Whilst this party will touch on the background to LDI, much of the philosophy behind setting discount rates and the rationale and prospects for precise hedging are covered elsewhere by the IFoA. This working party will therefore largely assume that a need to hedge both interest rates and inflation remains, along with the need for leverage.

Chair: Michael O’Connor

Established: 2023