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
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