21 Sep 2022 2 min read

Navigating rising rates: practical steps for volatile times

By LGIM

In a recent webinar, we discussed the role LGIM and our clients can play in tackling a challenging market environment.

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In light of rampant inflation, rising rates and market volatility, we recently held a webinar with our investment experts to address how clients can best plot a path through such a challenging environment.

Hetal Mehta, Senior European Economist; Guy Whitby-Smith, Head of Solutions Portfolio Management; and Anne-Marie Morris, Head of DB Solutions Strategy, joined Head of LDI Distribution Emma Rayner to address a number of topics.

These included the economic uncertainty that looks likely to endure for some time to come, implications for liability-driven investment (LDI) portfolios, and the role that both LGIM and our clients can play in readying themselves to react to such market conditions.

For example, with uncertainty seemingly likely to be one of the few certainties in the coming months, LGIM can perform modelling to help determine how much capital might be necessary for corresponding increases in interest rates to help clients size their collateral fund allocations.

Preparation is more important than ever; we believe helping clients to forward plan is the key to ensuring LDI mandates can be well managed.

Indeed, making sure clients have a clear picture of their liquid assets, ensuring there is clarity over collateral sufficiency, and knowing how leverage will be managed are among important considerations.

Access the recording to view the webinar and listen to our experts’ insights in full, as well as their responses to client questions.