LIABILITY DRIVEN INVESTING (LDI)

expertise

• Over 17 years of experience in operating diverse LDI businesses
• Managed the issuance of over $75 billion of guaranteed investment contracts, medium-term notes, commercial paper and term repurchase agreements
• Established relationships with dealers, derivative providers and investors
• Currently manage over $15 billion LDI strategies with a diverse client base, including financial institutions, insurance companies and conduits

Liability Driven Investing (LDI) is an investment strategy that incorporates an understanding of the liability into the asset allocation decision. Through our consistent market presence and diverse business model, we've established strong relationships in the market and manage various LDI strategies in multiple currencies, successfully navigating through multiple cycles and volatile markets. As a result, we've developed a deep knowledge base and infrastructure, with the team and systems in place to handle all aspects of an LDI business. Cutwater's LDI team offers an informed perspective, unparalleled top level client engagement, innovative solutions and superior service.

We utilize a comprehensive and integrated approach to liability driven investing and have developed sophisticated proprietary LDI models that can be tailored to our client's unique circumstances. These industry-leading models optimize the investment profile to meet liquidity demands, immunize liabilities, and enhance yield. Furthermore, we apply our proprietary state-of-the-art stochastic model and Risk Analysis Manager (RAM) to assign probabilities of the desired outcome for a given investment strategy versus a liability stream through time. We believe this quantitative analysis is unique and better informs the fundamental portfolio construction decisions that we develop through our disciplined process.

We can offer innovative solutions for:

• insurance companies
• defined benefit (DB) pension plans
• asset / liability programs
• economic or legal defeasances