Liability-driven investment (LDI)

Investing to match the shape of a liability rather than to beat an index — long-dated and inflation-linked exposure for a pension promise. Doing it with borrowed money adds collateral calls when rates move fast, which is what 2022 was about.

Where Liability-driven investment is explained in depth

The definition above is the short version. These pages put it to work, in the order they use it most:

Calculators that compute it

Terms this definition uses

The whole glossary

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