Revisiting the Term Premium Cost on Funded Status
An analysis of the term-risk premium, new ways to measure it, and how increasing interest-rate hedge ratios can impact expected funded status returns.
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Newark, NJ, United States
Tom McCartan, FIA, CFA, is a Principal of Liability-Driven Strategies at PGIM Fixed Income. Mr. McCartan is responsible for the development of custom LDI solutions for our clients. Prior to joining the Firm in 2015, Mr. McCartan was based in the UK where he spent the last four years at Redington, a London-based investment consultant for UK defined benefit pension plans. At Redington he advised plans on best practice for implementing LDI strategies and led a number of key LDI implementation projects for large UK pension plans. Prior to Redington he worked as an actuarial analyst with Mercer in Belfast. Mr. McCartan received a BSc. with Honors in Actuarial and Financial Studies from University College Dublin and is a Fellow of the Institute of Actuaries, the UK actuarial professional body. He holds the Chartered Financial Analyst (CFA) designation.
All information as of June 30, 2021. For purposes of the biographies, the “Firm” is defined as Prudential Financial, Inc. ("PFI"). All PGIM and Prudential named entities are subsidiaries or affiliates of PFI. PFI of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.