Global Pension Crisis – Unfunded Liabilities and How We Can Fill the Gap

<p>Preface xi</p>
<p>Acknowledgments xiii</p>
<p>About the Author xv</p>
<p>Chapter 1 Your Worst Nightmare 1</p>
<p>The Family 2</p>
<p>The Work 9</p>
<p>Where Does That Leave You? 15</p>
<p>Chapter 2 Dimensioning the Problem 17</p>
<p>Calculating the Sufficiency of Savings 18</p>
<p>Chapter 3 You Can t Build Your Walls High Enough 43</p>
<p>The Problem of Retirement Income Security 43</p>
<p>Generational Warfare over the Privilege Gap 47</p>
<p>Feeding the World 51</p>
<p>Post–Crisis Policy Adjustments 58</p>
<p>The Demographic Monster Stalking Us 61</p>
<p>Chapter 4 Money Matters 63</p>
<p>Enter Modern Portfolio Theory 63</p>
<p>The Search for Alpha 65</p>
<p>The Age of Derivatives 67</p>
<p>The Birth of Hedge Funds 72</p>
<p>Alpha/Beta Separation 73</p>
<p>The Origins of Alpha 75</p>
<p>Static versus Dynamic Assets and Liabilities 75</p>
<p>Summing Up 78</p>
<p>Chapter 5 Reinventing Retirement 81</p>
<p>Defined Benefit Plans 81</p>
<p>Defined Contribution Plans 82</p>
<p>Who s the Client After All? 84</p>
<p>The Changing Landscape 85</p>
<p>The Perfect Storm 87</p>
<p>Chapter 6 Alternatives Are Not Only for the Rich and Famous 93</p>
<p>Pension Assets and the Move Toward Alternative Assets 93</p>
<p>The Great Hedge Fund Debate 95</p>
<p>The Institutionalization of Hedge Funds 103</p>
<p>Chapter 7 The Long and the Short of It . . . Trust Me 115</p>
<p>Alpha from Operations 116</p>
<p>Operational Risk 117</p>
<p>Securities Lending History 119</p>
<p>The Securities Lending Market 121</p>
<p>Securities Lending Flow, Process, and Mechanics 124</p>
<p>Ratio Lending 131</p>
<p>The Rehypothecation Two–Step 132</p>
<p>Chapter 8 Liability–Driven Alpha 137</p>
<p>Painting the Recent Pension Landscape 139</p>
<p>Risks 140</p>
<p>Basic LDI Guidelines 142</p>
<p>Chapter 9 Power Tools for Pensions 145</p>
<p>Pension Benefit Guaranty Corporation 146</p>
<p>Factors Affecting the PBGC Insurance Programs 147</p>
<p>Plan Terminations 149</p>
<p>Pension Risk Transfer 150</p>
<p>Synthetic Mutual Fund Notes 161</p>
<p>The Role for Pension Funds 165</p>
<p>The Yale Model (the Illiquidity Premium) versus</p>
<p>the All–Weather Model 167</p>
<p>Chapter 10 The Poverty of Nations (Apologies to Adam Smith) 175</p>
<p>Is There a Path to Salvation? 176</p>
<p>The Chilean Terrarium 179</p>
<p>Chapter 11 The Ultimate Solution 187</p>
<p>The Nation, State, Municipality, and Company 187</p>
<p>You as an Individual 191</p>
<p>Chapter 12 A Peaceful Night s Sleep 195</p>
<p>What Our Family Looks Like Now 198</p>
<p>Concluding Thoughts 201</p>
<p>Works Cited 203</p>
<p>Index 209</p>
<p>&nbsp;</p>