With over $58 trillion in assets globally, pension fund managers are major participants in financial markets and play a vital role in helping to provide post-retirement incomes for plan employees. Meeting such an important goal requires careful consideration of investment goals and risks, and alignment of assets and liabilities within strict fiduciary and regulatory standards.
To address these challenges, pension fund managers have steadily expanded their use of derivatives over the past several decades, using interest rate swaps, currency forwards, inflation swaps and other instruments.
This paper examines how and why pension funds use derivatives, drawing on examples. It also reviews the global regulatory landscape that shapes derivatives use and highlights the role ISDA plays in helping pension funds navigate these markets.
Click on the PDF to read the full paper.
Documents (1) for How and Why Pension Funds Use Derivatives
Latest
Four Directors Join ISDA Board
ISDA has announced that two directors have been elected to the ISDA board and two new directors have been appointed, as ISDA’s 40th Annual General Meeting gets underway in Boston. The newly appointed directors are: Tom Ceusters, Director and Chief...
Episode 56: Countdown to Treasury Clearing
With less than nine months to go until the first US Treasury clearing mandates come into force, BlackRock’s Tyler Wellensiek and BNY’s Nate Wuerffel discuss industry progress. Please view this page via Chrome to access the recording.
Response to Eurosystem Consultation on Appia
On April 22, ISDA responded to the Eurosystem consultation on the Appia roadmap. ISDA broadly supports the roadmap and its high level principles, while recommending that the principle on market access and integration should be expanded to explicitly address interoperability...
ISDA Responds to ESMA on PTRR Clearing Exemption
On April 20, ISDA submitted a response to the European Securities and Markets Authority (ESMA) consultation paper on a draft regulatory technical standard (RTS) for the post-trade risk reduction (PTRR) exemption from the derivatives clearing obligation under Article 4b of the...