Long Duration
Long duration bond strategies provide defined benefit plans with improved asset liability management. Funds are positioned to maximize returns while maintaining risk levels tied to long duration benchmarks. Long duration bonds offer a low-cost hedge against the volatility of defined benefit plan obligations. Associated benefits include greater long-term expected return, a high quality trade-off between market risk and market return, reduced risk and protection from cost volatility.
Defined benefit plan managers favor long duration bond strategies in order to place themselves further out on the yield curve and to serve their strategic and tactical purposes.
