[Verse 1] When institutions have bills to pay Pensions and promises along the way They can't just chase the highest return There's a smarter lesson they must learn Match your assets to what you owe That's the way successful portfolios grow [Chorus] Liability-driven, that's the way Match duration, match the day Surplus optimization, keep it tight Assets and liabilities in sight LDI, LDI, match what you're owing Keep your surplus growing, growing, growing [Verse 2] Duration matching is the key When your bond payments come due, you see If rates go up and bonds fall down Your liabilities shrink with the same frown It's not about the biggest gain It's hedging out the interest pain [Chorus] Liability-driven, that's the way Match duration, match the day Surplus optimization, keep it tight Assets and liabilities in sight LDI, LDI, match what you're owing Keep your surplus growing, growing, growing [Bridge] Pension funds and insurance companies know Cash flows out, but when and how much dough? Model every payment, every year Then build a portfolio crystal clear Immunization stops the rate risk game Surplus stays stable, that's the aim [Verse 3] Beyond just matching what you owe Optimize surplus, watch it grow Take some credit risk, equities too But hedge the rates, that's what you do Asset allocation with a twist Liabilities can't be dismissed [Chorus] Liability-driven, that's the way Match duration, match the day Surplus optimization, keep it tight Assets and liabilities in sight LDI, LDI, match what you're owing Keep your surplus growing, growing, growing [Outro] When obligations call your name Don't play the market timing game Match your assets, hedge your bets That's how institutions pay their debts Liability-driven investing wins That's where true portfolio wisdom begins
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