Ehrentreich Ldi Consulting & Research

ehrentreich ldi consulting & research is specialized on providing consulting services on liability driven investment (ldi) strategies to db plan sponsors, investment managers, and other consulting companies. we have proposed the existence of an asset returning - funding cost paradox for db pension plans. according to this paradox, it is likely that lower returning ldi strategies in the us will result in lower funding costs than higher returning, but more volatile equity based investment strategies. because of the regulatory framework in the us, the requirements to convert an eventual equity risk premium into lower funding costs are generally not in place. by holding equities, plan sponsors increase their funding status volatility with little or no hope of actually profiting from a long-term risk premium. we are, therefore, strong advocates for liability driven investment strategies, not only for corporate db pension plans, but also for public pension plans. consulting services * develo