Global Pension Crisis: Unfunded Liabilities and How We Can Fill the Gap

ffirs.pdf......Page 3
ftoc.pdf......Page 9
fbetw.pdf......Page 13
fpref.pdf......Page 15
flast.pdf......Page 17
About the Author......Page 19
Chapter 1 Your Worst Nightmare......Page 21
Linda and Barbara......Page 22
Michael and Beth......Page 23
Kim......Page 24
Pete and Geoffrey......Page 25
Nancy and Anthony......Page 26
Jesse and Sofia......Page 27
Valene......Page 28
The Work......Page 29
The Investment Arena......Page 30
Pension Math......Page 31
The States......Page 32
The Country......Page 34
Where Does That Leave You?......Page 35
Chapter 2 Dimensioning the Problem......Page 37
Calculating the Sufficiency of Savings......Page 38
Worldwide Wealth and Retirement Assets......Page 39
National Retirement Asset Sufficiency......Page 43
Retirement Age and Longevity......Page 45
GDP Projections and Demographics......Page 48
Old Age Dependency Ratios......Page 52
The Problem of Retirement Income Security......Page 63
Generational Warfare over the “Privilege Gap”......Page 67
Feeding the World......Page 71
Post-Crisis Policy Adjustments......Page 78
The Demographic Monster Stalking Us......Page 81
Enter Modern Portfolio Theory......Page 83
The Search for Alpha......Page 85
The Age of Derivatives......Page 87
The Birth of Hedge Funds......Page 92
Alpha/Beta Separation......Page 93
Static versus Dynamic Assets and Liabilities......Page 95
Example 1: Time Value of Money with Static Liabilities......Page 96
Example 3: Matching Assets with Dynamic Liabilities......Page 97
Summing Up......Page 98
Defined Benefit Plans......Page 101
Defined Contribution Plans......Page 102
Who’s the Client After All?......Page 104
The Changing Landscape......Page 105
The Perfect Storm......Page 107
Pension Assets and the Move Toward Alternative Assets......Page 113
The Great Hedge Fund Debate......Page 115
The Institutionalization of Hedge Funds......Page 123
Chapter 7 The Long and the Short of It . . . Trust Me......Page 135
Alpha from Operations......Page 136
Operational Risk......Page 137
Securities Lending History......Page 139
The Securities Lending Market......Page 141
Securities Lending Flow, Process, and Mechanics......Page 144
Hedge Funds......Page 146
Custodian Banks......Page 147
Beneficial Owners......Page 150
Ratio Lending......Page 151
The Rehypothecation Two-Step......Page 152
Chapter 8 Liability-Driven Alpha......Page 157
Painting the Recent Pension Landscape......Page 159
Interest Rate Risk......Page 160
Bond Risk......Page 161
Basic LDI Guidelines......Page 162
Chapter 9 Power Tools for Pensions......Page 165
Pension Benefit Guaranty Corporation......Page 166
Factors Affecting the PBGC Insurance Programs......Page 167
Plan Terminations......Page 169
Risk Mitigation......Page 170
The Freeze......Page 172
Termination Nation......Page 173
Pension Buy-Ins......Page 175
Pension Buyouts......Page 176
The Issue......Page 181
The Solution......Page 182
How the Product Works......Page 183
A Compelling and Unique Opportunity......Page 184
The Role for Pension Funds......Page 185
The Yale Model (the Illiquidity Premium) versus the All-Weather Model......Page 187
Chapter 10 The Poverty of Nations (Apologies to Adam Smith)......Page 195
Is There a Path to Salvation?......Page 196
The Chilean Terrarium......Page 199
The Nation, State, Municipality, and Company......Page 207
You as an Individual......Page 211
Chapter 12 A Peaceful Night’s Sleep......Page 215
Michael......Page 218
Nancy and Anthony......Page 219
Jesse and Sofia......Page 220
Concluding Thoughts......Page 221
Works Cited......Page 223
Index......Page 229
fmmmmm.pdf......Page 0