This white paper sets out to explain an important financial planning model called the asset liability management (ALM); in particular it discusses why in practice, optimum planning models are used. The ability to build an integrated approach which combines liability models with that of asset allocation decisions have proved desirable and more efficient in that it can lead to better ALM decisions. The role of uncertainty, and quantification of risk in these planning models is considered. This white paper will be of interest to corporate treasurers, to fund managers in the pension & insurance industry, and to analysts who support ALM models in different financial institutions.
Click here to read full paper