The Markit iBoxx US Pension Liability Indices comprise a three-index set of benchmarks that reflects pension liability performance. The indices help plan sponsors, consultants and investment managers construct more successful liability-based investment strategies.
The indices enable consultants, plan sponsors and other investors to manage long-duration bond portfolios and other liability-driven strategies against them. Compared to other options currently available for liability benchmarks, these indices are more comprehensive and offer the following advantages:
- They are based on actual liability profiles and mimic the investment grade yield curve. They are therefore more appropriate than most existing indices.
- They are published daily and are directly investable, using the LIBOR interest rate swap curve as the discount curve – a highly liquid universe.
- They provide the flexibility to use combinations of the indices in order to accurately represent customized liability profiles based on a plan’s specific participant population.
For the version of current Markit iBoxx US Pension Liability index rules, please click here.