LDI Meaning?
LDI stands for “Liability-Driven Investing,” an investment strategy primarily used by pension funds and insurance companies. The goal of LDI is to match the investment portfolio’s performance with the present and future liabilities, such as pensions or insurance payouts. By focusing on assets that correspond closely to the liabilities, LDI aims to reduce the risk of funding shortfalls due to market fluctuations.
LDI Meaning? – Synonyms
Liability-focused investing
Liability-matching strategy
Asset-liability management
Pension liability hedging
Risk-hedging investment strategy
Liability-aligned investing
Debt-driven investment
Obligation-centered investing
Pension-fund management strategy
Risk mitigation investment approach
LDI Meaning? – Antonyms
Asset-driven investing
Growth-oriented investing
Return-focused investment
Speculative investing
High-risk investment strategy
Profit-driven investing
Equity-centered investment
Capital appreciation strategy
Aggressive investment approach
Yield-focused investing
LDI Meaning? – Short Sentence Examples
The company adopted an LDI strategy to secure its future liabilities.
LDI helps pension funds align their assets with long-term obligations.
Many insurance firms use LDI to hedge against liability risks.
Implementing LDI can protect against interest rate fluctuations.
LDI focuses on minimizing funding gaps by matching liabilities with investments.
