Description: Feature article discussing the possibility of the LIBOR rate ceasing to exist in 2021 at what that would mean for insurance companies.

Description: As we meet with pension plan sponsors and consultants across Canada we find that the subject of liability-driven investing LDI comes up repeatedly even when we do not initiate the discussion. We also find that LDI seems to mean something different to each person we meet. Is LDI just a new name for asset/liability management ALM? Or is LDI just about hedging interest rate risks with fancy securities? In this article we describe a framework for understanding what LDI is, how it relates to ALM, and how it can be used to solve real-life problems for Canadian pension funds.

Description: Chairperson’s Corner: SOA Plans New Risk Management Section

Description: Feature article describing a framework for the computation of credit capital requirements under the constant position paradigm, taking into account recovery rates.

Description: This article gives an overview and explanation of behavioral finance.

Description: This article presents some thoughts on the role of the investment actuary in the United Kingdom. It is a topical subject, prompted by a feeling that the U.K. profession is not fulfilling its potential in this specialty. The article has three main themes: a Some historical perspective b What the professional actuary uniquely has to offer the investment marketplace and c What the consulting actuaries in the U.K. currently offer their clients.

Description: In reference to the book Fooled by Randomness by Nassim Nicholas Taleb, Steven Scoles describes our ability to detect patterns in certain aspects of life and how these patterns may in fact be simple randomness.

Description: Summary of April 2020 Investment Section Town Hall and come additional commentary.

Description: This article lays out a generic framework on how to hedge a European call option on a non-dividend paying stock using futures in a stochastic interest rate environment.