Moody's Analytics buy-side asset and liability management (ALM) solution helps defined-benefit (DB) pension plans and their advisers to evaluate risk from multiple perspectives and perform real-time scenario stress-testing. This enables a greater understanding of plan performance, and helps promote better strategic decisions.
The solution focuses on the needs of asset owners (DB pension plans, endowments, and foundations), asset managers, and consultants. It delivers a transparent view of asset and liability risk and delivers thorough, informed analysis of a plan’s overall position.
Maintain an up-to-date view of pension plans
Our cloud-based solution delivers key rate duration and dollar duration (DV01) analysis for assets, liabilities, and net position, attributed across customizable maturity buckets. Cash flow and liquidity analysis allows plans to evaluate asset and liability cash flows in combination and to identify mismatches and potential liquidity issues.
The reconciliation analysis enables monitoring of funded-status movement for a defined time period. Considerations include drivers such as interest rates, credit spreads, benefit payments, expenses, plan contributions, and changes in market indexes. “What-if” stress testing can be applied to funded levels. By changing economic parameters and liability assumptions, the plan can gauge the impact on payment liquidity caused by a change in asset allocation.
PFaroe DB software is a web-based cross-balance sheet asset, liability, and risk management platform, built with the needs of the asset owner in mind