The following article is excerpted from Infrastructure debt: A natural fit for LDI investors seeking to hedge liabilities, a report by Allianz Global Investors. Accompanying footnotes and graphics are available here: https://us.allianzgi.com/en-us/institutional/insights/investment-intelligence/infrastructure-debt-and-ldi-investors-reprint

Institutional investors deploying liability-driven investing (LDI) strategies face a perennial challenge of finding optimal ways to match assets and liabilities within an investment world full of constraints. That’s especially true now after the COVID-19 crisis has roiled financial markets and disrupted the global economy in ways that may take years to recover. Specifically, for institutional investors, hedging liabilities has become particularly challenging in light of: a) the limited supply of U.S. long-duration investment-grade credit; b) increased volatility after the COVID-19 pandemic as a result of future earnings u