@article {Kurian121, author = {Sean Kurian}, title = {LDI: Low Yields, Customization, and Managing Downside Risk{\textemdash}Avoiding a {\textquotedblleft}Mexican Standoff{\textquotedblright} }, volume = {25}, number = {4}, pages = {121--133}, year = {2016}, doi = {10.3905/joi.2016.25.4.121}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Liability-driven investing (LDI) has come a long way since its inception and early days as a risk management framework. The landscape now includes a broad range of providers and corresponding strategies, with varying degrees of sophistication and associated benefits. However, it faces a number of challenges as a consequence of the prevailing low-yield and low-return investment environment. This article seeks to highlight the low-yield environment and how it may be managed under a framework that creates value for investors and is aligned with those investors{\textquoteright} underlying fiduciary obligations. By intention, the article is broad in coverage, as a function of the many issues and considerations affecting U.S. defined-benefit pension plans as they relate to LDI and associated risk management considerations.TOPICS: Portfolio construction, wealth management}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/25/4/121}, eprint = {https://joi.pm-research.com/content/25/4/121.full.pdf}, journal = {The Journal of Investing} }